Press release: 1995-05-11: Tom Kalinske predicts video games to be $9 billion industry in U.S. by year 2000

From Sega Retro

This is an unaltered copy of a press release, for use as a primary source on Sega Retro. Please do not edit the contents below.
Language: English
Original source: The Free Library

LOS ANGELES--(BUSINESS WIRE)--May 11, 1995--During the inaugural keynote address at the Electronic Entertainment Expo, Sega of America President and Chief Executive Officer Tom Kalinske predicted that the interactive-entertainment industry, including video games, would nearly double to $9 billion by the end of the century.

Kalinske said this growth would be predicated on the demand for next-generation video-game systems, such as Sega Saturn, which will appeal to a broader audience than the traditional video-game market, and the growing popularity of PCs in the home.

Kalinske closed his address by announcing the immediate availability of Sega Saturn, Sega's next-generation gaming platform, which has sold 1 million units in Japan since its introduction there last November.

Kalinske used his address to dispel two myths about the interactive-entertainment business with a Yogi Berrism: ``When I see a fork in the road, I take it.''

``Multimedia PC game sales are going to increase rapidly ... and in the very near future, Sega will be getting into it,'' said Kalinske. ``But the truth is, PC games aren't going to kill game machines any more than VCRs killed the movie business.''

The other myth addressed by Kalinske is one that says success in the video-game business is decided by boys 6 to 17 years old. But Sega, the No. 1 interactive-entertainment company in the world, has reached its status with games that have a broader appeal.

``Forty-nine percent of our business is already with adults 18 or older (from 38 percent in 1992). And that trend is going to continue. But we are not forgetting about the group that put us where we are. We will still make hot action and sports titles. (But) as we begin to skew our products toward an older, more sophisticated consumer, we are giving kids room to realize their aspirations.''

Kalinske explained how Sega Saturn refutes the two myths. Sega Saturn delivers an interactive experience that meets the high demand among core games and has a high appeal for more mainstream consumers because of the realistic visuals, compelling audio and complete interactive-entertainment experience.

Kalinske predicts that Sega will sell 600,000 Sega Saturns in the United States by the end of this year, bringing Sega Saturn's worldwide total to more than 3 million by the end of 1995.

Sega of America is the arm of Tokyo-based Sega Enterprises Ltd. responsible for the development, marketing and distribution of Sega products in the Americas. Sega Enterprises is a nearly $4 billion company known as the leader in interactive digital entertainment media, with operations on five continents. Sega of America's World Wide Web site is located at (

CONTACT: Manning, Selvage & Lee, Universal City, Calif.

Greg Chiemingo, 213/765-4661 (at E3 Sega Booth)

818/509-1840 (after May 13)
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