> Sega® of America, based in San Francisco, California, was established
in 1986 as the wholly owned subsidiary of Sega Enterprises,
Ltd., of Japan. However, its history goes back more than 40 years.
> Sega was founded in Japan in 1954 by an American, David Rosen, as a company
called Service Games Company, for the purpose of developing
amusement-type games. In 1956, Rosen started importing mechanical coin-operated
games, which were popular on U.S. military bases in Japan.
During these early days, Rosen learned a lesson that still guides Sega
-- better technology plus great gameplay wins the market.
> In 1965, Rosen decided to make his own coin-operated games and acquired
a factory through the purchase of a Tokyo jukebox and slot-machine maker.
The company began stamping "SEGA" on its games -- short for Service Games,
and the name was adopted by Rosen. The next year, Sega produced "Periscope,"
which became a worldwide hit. It was at this time that Rosen sold Sega
to Gulf & Western Industries, continuing on as CEO.
> Gulf & Western continued to build on the company's original product
and marketing strategy, with revenues hitting $214 million in 1982. By
1983, several "firsts" were introduced, including the first laser disc
game, "Sega Astron Belt," the first 3D video game, "SubRoc-3D," and Sega's
first consumer video game console, "SG-1000," all marketed in Japan.
> The arcades and the U.S. home market crashed shortly after. Gulf &
Western, which had spun off 20 percent of Sega, bought back the public
shares and sold the U. S. assets to Bally Manufacturing Corp. However,
in Japan, Sega survived. Back in 1979, Rosen had acquired a distribution
company founded by a Japanese entrepreneur, Hayao Nakayama. Following the
crash, Rosen joined Nakayama and other Japanese investors to buy the Japanese
assets of Sega for $38 million. Nakayama became chief executive and Rosen
headed the U.S. subsidiary. From that point forward, the company vowed
to stick not with one concept too long, realizing that each generation
of technology has a life and death.
> In 1984, Sega Enterprises was bought by a partnership between Sega Enterprises
Japanese management and CSK, forming Sega Enterprise Ltd., a Japan-based
company.
> In 1986, Sega Enterprises Ltd.'s stock was listed over the counter on
the Tokyo Stock Exchange. In addition, Sega of America was established
to adapt and market video game products to a rapidly expanding American
market. It was subsequently given the charter to develop software products
specifically for the American market.
> In the late 1980s, Sega Enterprises introduced a line of extremely successful
video game systems and software titles that propelled the company into
international prominence, making it the world's second largest vendor of
consumer video game products. In 1990, Sega Enterprises Ltd.'s stock was
listed on the first tier of the Tokyo Stock Exchange. In 1993, the stock
was listed on the pink sheets of NASDAQ and available in ADR in the U.S.
In 1990, Sega aimed its products at a slightly older market than its main
competitor, Nintendo, and released the 16-bit console, Sega Genesis™. Sega
was quickly recognized by its fast-paced, "in-your-face" marketing and
advertising, putting the company in the ranks of NIKE and Levi's as favorite
brands among America's youth.
> In December 1994, Sega of America, in a joint venture with Time Warner
and TCI, launched the Sega Channel, which is a nationwide subscription-based
cable network which provides videogames to Sega Genesis owners via their
cable box. The Sega Channel was praised by the cable industry as the "coolest
new service."
> In 1995, Sega of America launched the Sega Saturn video game system,
bringing arcade-quality gaming to the home. Saturn games earned more coveted
"Five Star" product review ratings from a popular industry video game magazine
than any other platform. In 1996, Sega launched the Sega Saturn Net Link,
a modem that plugs into the Saturn console for online gaming and full Internet
access. To date, there are more than 300 first party and third party games
in the Sega Saturn library.
> Also in 1995, SegaSoft was formed through a joint venture between Sega
of America and CSK Corporation to create interactive content. The
growth of Sega companies continued in 1996 with the creation of Sega Entertainment,
Inc., a joint venture between Sega of America and SOFTBANK Holdings, Inc.
Named one of PC Data's top 25 publishers in 1997, based on software sales,
Sega Entertainment is committed to creating original titles and customizing
Sega content in the real-time strategy, simulation, action and sports gaming
categories.
> Also in 1996, Sega, MCA and the DreamWorks' creative team of Steven Spielberg,
David Geffen and Jeffrey Katzenberg joined forces as Sega GameWorks to
create family-oriented location-based entertainment centers with the goal
of expanding the gaming market. In 1997, Sega promoted Bernie Stolar to
COO of Sega of America. Previously Executive Vice President of Product
Development and COO of Sega Entertainment, Stolar is an industry veteran,
with more than 20 years in the video game business. As a visionary, Stolar
plans to lead Sega into the next generation of gaming, while continuing
to maintain Sega's strong brand awareness and position in the marketplace.
> Today Sega's global goal is to be the leading developer of interactive
entertainment in and out of the home. Sega of America's role in this vision
is to define television console-based entertainment, setting the standard
for the
best, most engaging interactive
software. Early in 1998, the company announced it will launch a new,
high-powered "super" console in the fall of 1999. This system will break
new ground in the quality and categories of interactive
entertainment offered on
the television. Leading the charge is Sega of America's newly appointed
president, Bernie Stolar. Sega will take the industry to a new level of
gaming with original content that triggers tangible and emotional responses
and pervasive marketing that will redefine the video game experience.
