Sega experienced a meteoric rise in the early 1990s, but by the early 2000s, they had abandoned the hardware business and become a software company. Several factors contributed to Sega's downfall, including disagreements between Sega of Japan and Sega of America, leading to missteps and missed opportunities.
Three specific instances where Sega went wrong include:
1. The Sega 32X add-on for the Sega Genesis, which was an awkward and expensive addition that failed to deliver on its promises.
2. Partnering with Sony to develop a CD-based console, which ultimately fell through due to Sega of Japan's disapproval.
3. The surprise launch of the Sega Saturn in North America, which caught retailers and consumers off guard, leading to limited supply, a hefty price tag, and a lack of launch titles.
The surprise launch of the Saturn is seen as a pivotal moment in Sega's history, ultimately dooming the company to obscurity in the console wars.
Here are the key facts extracted from the text:
1. Sega's market share rose from 10% to over 50% in the early 1990s.
2. By the early 2000s, Sega had abandoned the hardware business and became a software company.
3. Sega developed a 32-bit add-on for the Sega Genesis, called the 32x, which was released in November 1994.
4. The 32x was designed to be a permanent addition to the Genesis, allowing players to play either 32x or Genesis games.
5. The 32x had a poor library of games, with only three titles available at launch.
6. The 32x was released with a price tag of around $160.
7. Sega launched a multi-million dollar ad campaign to promote the 32x.
8. Despite initial demand, sales of the 32x dropped off sharply after the 1994 holiday season.
9. The 32x library eventually grew to include 40 titles.
10. Sega worked with Sony on a CD-based video game console, but Sega of Japan rejected the idea.
11. Sony decided to go solo and released the PlayStation in 1994, which went on to sell over 100 million units.
12. Sega launched the Sega Saturn in Japan on November 22, 1994, with initial sales of 500,000 units.
13. The North American launch of the Saturn was set for September 1995, but was pushed forward to May 11, 1995.
14. The Saturn launched with a price tag of $399 and only 6 launch titles.
15. The surprise launch of the Saturn resulted in limited supply and a hefty price tag.
16. The Saturn was notoriously difficult to program games for, with even Sega's own Yu Suzuki stating that only 1 out of 100 programmers were good enough to properly program the system.
17. The Sony PlayStation launched in September 1995, selling 100,000 units in two days and was $100 cheaper than the Saturn.
18. Sega never recovered from the disastrous launch of the Saturn and the console faded into obscurity.
19. Tom Kalinske resigned from Sega of America less than a year after the Saturn's launch.
20. The Saturn was discontinued in 1998, and Sega of Japan president Hayao Nakayama left the company.
21. Sega followed up the Saturn with the Sega Dreamcast, but it also had its shortcomings and was discontinued in 2001.
22. Sega announced that they were no longer making hardware in 2001.