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{{About|the video game company}}
{{About|the video game company}}
{{very long|date=February 2014}}
{{Use mdy dates|date=July 2011}}
{{Use mdy dates|date=July 2011}}
<!--This article is in US English-->
<!--This article is in US English-->
{{Infobox company
{{Infobox company
| name = Sega Corporation
| name = Sega
| logo = [[File:SEGA logo.svg|200px|Sega Logo]]
| logo = [[File:Sega logo.svg|200px|Sega Logo]]
| image =[[File:Sega Office2.jpg|300px]]
| image_caption =Sega's headquarters complex in Ōta, Tokyo
| caption = Company logo since 1976
| caption = Company logo since 1976
| image = File:Sega Office2.jpg
| native_name = セガ
| image_caption = Sega headquarters Building 1, [[Ōta, Tokyo|Ōta]], Tokyo
| native_name = 株式会社セガ
| native_name_lang = jp
| native_name_lang = jp
| type = [[Subsidiary]]<br />[[Kabushiki gaisha]]
| type = [[Subsidiary]]
| industry = [[Video game industry|Video games]]<br />[[Arcade game]]s<br />[[Third-party developer|Third party publisher]]
| industry = [[Video game industry|Video games]]<br />[[Arcade game]]s<br />[[Third-party developer|Third party publisher]]<br />
[[Amusement arcade|Amusement]]<br />[[Interactive entertainment]]<br />[[Entertainment]]
| foundation = [[Honolulu|Honolulu, Hawaii]], [[United States|U.S.]] ({{Start date|1940}}, as Service Games)
| foundation = [[Honolulu|Honolulu, Hawaii]], U.S. ({{Start date|1940}}, as Service Games)
| founder = Martin Bromley<br>Irving Bromberg<br>James Humpert<br>[[David Rosen (business)|David Rosen]]
| founder = Martin Bromely<br>Irving Bromberg<br>James Humpert<br>[[David Rosen (business)|David Rosen]]
| location_city = [[Ōta, Tokyo]]
| location_city = [[Ōta, Tokyo]]
| location_country = [[Japan]]
| location_country = Japan
| locations = ''International Offices'':<br />[[San Francisco]], California, U.S.<br />[[Brentford]], Greater London, United Kingdom<br />[[Seoul]], South Korea<br />[[Vancouver]], Canada<br />[[Moscow]], Russia
| locations = ''International Offices'':<br />[[San Francisco]], California, U.S.<br />[[Brentford]], Greater London, United Kingdom<br />[[Seoul]], South Korea<br />[[Vancouver]], Canada<br />[[Moscow]], Russia
| area_served = Worldwide
| area_served = Worldwide
| key_people = Hideki Okumuro<br /><small>(President and COO)</small><br />Jürgen Post<br /><small>(CEO, Sega Europe)</small><br />John Cheng<br /><small>(CEO, Sega of America)</small>
| key_people = [[Hajime Satomi]] <br /><small>(CEO, [[Sega Sammy Holdings]])</small> <br />Haruki Satomi <br /><small>(CEO, [[Sega Sammy Holdings]])</small> <br />Hideki Okamura<br /> <small>(President and COO)</small> <br />[[Toshihiro Nagoshi]]<br /> <small>([[Chief creative officer|CCO]])</small> <br />Hiroshi Kataoka<br /> <small>(Creative Officer)</small><br />Jürgen Post<br /> <small>(CEO, Sega Europe)</small> <br />John Cheng<br /> <small>(CEO, Sega of America)</small>
| products = <!-- Please keep this to only the ones confirmed on the site. Adding any others could be taken as vandalism. -->'''Games'''<Br/>[[Sonic the Hedgehog (series)|''Sonic the Hedgehog'' series]]<br />[[Phantasy Star|''Phantasy Star'' series]]<br />[[Shining (series)|''Shining'' series]]<br />[[Puyo Puyo (series)|''Puyo Puyo'' series]]<br />[[Virtua Fighter (series)|''Virtua Fighter'' series]]<br />[[The House of the Dead (series)|''The House of the Dead'' series]]<br />[[Sakura Wars|''Sakura Wars'' series]]<br />[[Valkyria Chronicles|''Valkyria Chronicles'' series]]<br />[[Super Monkey Ball (series)|''Super Monkey Ball'' series]]<br />[[Yakuza (series)|''Yakuza'' series]]<br />[[Hatsune Miku: Project DIVA|''Hatsune Miku: Project DIVA'' series]]<br />[[Shinobi (series)|''Shinobi'' series]]<br />'''Game consoles'''<br/>[[SG-1000]]<br />[[Master System]]<br />[[Sega Genesis|Mega Drive/Genesis]]<br />[[Sega Game Gear|Game Gear]]<br />[[Sega Mega-CD|Mega-CD]]<br />[[Sega 32X]]<br />[[Sega Saturn|Saturn]]<br />[[Dreamcast]]
| products = <!-- Please keep this to only the ones confirmed on the site. Adding any others could be taken as vandalism. -->'''Games'''<br/>[[Sonic the Hedgehog (series)|''Sonic the Hedgehog'' series]]<br />[[Phantasy Star|''Phantasy Star'' series]]<br />[[Shining (series)|''Shining'' series]]<br />[[Puyo Puyo (series)|''Puyo Puyo'' series]]<br />[[Virtua Fighter (series)|''Virtua Fighter'' series]]<br />[[The House of the Dead (series)|''The House of the Dead'' series]]<br />[[Sakura Wars|''Sakura Wars'' series]]<br />[[Valkyria Chronicles|''Valkyria Chronicles'' series]]<br />[[Super Monkey Ball (series)|''Super Monkey Ball'' series]]<br />[[Yakuza (series)|''Yakuza'' series]]<br />[[Hatsune Miku: Project DIVA|''Hatsune Miku: Project DIVA'' series]]<br />[[Shinobi (series)|''Shinobi'' series]]<br />'''Game consoles (1983-present)'''<br/>[[SG-1000]]<br />[[Master System]]<br />[[Sega Genesis|Mega Drive/Genesis]]<br />[[Sega Game Gear|Game Gear]]<br />[[Sega Mega-CD|Mega-CD]]<br />[[Sega 32X]]<br />[[Sega Saturn|Saturn]]<br />[[Dreamcast]]
| num_employees = 2,226 (FY 2014) <ref>http://www.segasammy.co.jp/english/ir/library/printing_annual.html</ref>
| revenue = {{increase}} [[Japanese Yen|¥]]396.7&nbsp;billion (2011) US$4.9 billion
| subsid = [[Atlus]]<br />[[The Creative Assembly]]<br />[[Demiurge Studios]]<br />[[Index Corporation]]<br />[[Relic Entertainment]]<br />[[Sports Interactive]]<br />[[Three Rings Design]]<br />[[Marza Animation Planet]]<br />[[TMS Entertainment]]
| net_income = {{increase}} [[Japanese Yen|¥]]41.5&nbsp;billion (2011) US$512.857 million
| num_employees = 2,208 (FY 2013)
| subsid = [[The Creative Assembly]]<br />[[Relic Entertainment]]<br />[[Sports Interactive]]<br />[[Atlus]]<br />[[Index Corporation]]<br />[[Three Rings Design]]
| parent = [[Sega Sammy Holdings]]
| parent = [[Sega Sammy Holdings]]
| owner = Independent <br><small>({{Start date|1940}}–{{End date|1969}})</small><br>[[Gulf and Western Industries|Gulf+Western]] ([[Viacom]])<br><small>({{Start date|1969}}–{{End date|1984}})</small><br>[[Bally Manufacturing]]<br><small>(1984)</small><br>[[CSK Holdings Corporation]]<br><small>({{Start date|1984}}–{{End date|2004}})</small><br />[[Sega Sammy Holdings]] <small>({{Start date|2004}}–present)</small>
| owner = Independent <br><small>({{Start date|1940}}–{{End date|1969}})</small><br>[[Gulf and Western Industries|Gulf+Western]] ([[Viacom]])<br><small>({{Start date|1969}}–{{End date|1984}})</small><br>[[Bally Manufacturing]]<br><small>(1984)</small><br>[[CSK Holdings Corporation]]<br><small>({{Start date|1984}}–{{End date|2004}})</small><br />[[Sega Sammy Holdings]] <small>({{Start date|2004}}–present)</small>
| homepage = {{URL|http://www.sega.co.jp/|Sega Corporation (Japan)}}<br />{{URL|http://www.sega.com/|Sega of America}}<br />{{URL|http://www.sega.co.uk/|Sega Europe}}<br />
| homepage = {{URL|http://www.sega.co.jp/|Sega of Japan}}<br />{{URL|http://www.sega.com/|Sega of America}}<br />{{URL|http://www.sega.co.uk/|Sega Europe}}<br />
}}
}}
The {{nihongo|'''Sega Corporation'''|株式会社セガ|[[Kabushiki gaisha]] Sega}} (short for '''''Se'''rvice '''Ga'''mes''), and usually styled as '''SEGA''', is a Japanese [[multinational corporation|multinational]] [[video game]] [[video game development|developer]], publisher, and [[Video game arcade cabinet|hardware]] development company headquartered in [[Tokyo]], [[Japan]], with multiple offices around the world. Sega developed and manufactured numerous [[video game console|home video game consoles]] from 1983 to 2001, but the financial losses incurred from their [[Dreamcast]] console caused the company to restructure itself in 2001, and focus on providing software as a third-party developer, exiting console manufacturing completely.<ref name="SegaRestructure">{{cite web|title=Sega announces drastic restructuring|author=Shahed Ahmed|publisher=[[GameSpot]]|url=http://www.gamespot.com/news/2680518.html|date=January 31, 2001|accessdate=September 20, 2009}}</ref> However, arcade development would continue unaffected. Sega, along with their many software studios, are known for multi-million-selling game franchises including ''[[Sonic the Hedgehog (series)|Sonic the Hedgehog]]'', ''[[Virtua Fighter (series)|Virtua Fighter]]'', ''[[Phantasy Star (series)|Phantasy Star]]'', ''[[Yakuza (series)|Yakuza]]'', and ''[[Total War (series)|Total War]]''.
{{Organize section|date=March 2015}}{{nihongo|'''Sega'''|セガ|Sega}} (short for '''''Se'''rvice '''Ga'''mes''), and usually styled as '''SEGA''', is a Japanese [[multinational corporation|multinational]] [[video game]] [[video game development|developer]], publisher, and [[Video game arcade cabinet|hardware]] development company headquartered in [[Tokyo]], [[Japan]], with multiple offices around the world. Sega developed and manufactured numerous [[video game console|home video game consoles]] from 1983 to 2001, but the financial losses incurred from their [[Dreamcast]] console caused the company to restructure itself in 2001, and focus on providing software as a third-party developer, exiting console manufacturing completely.<ref name="SegaRestructure">{{cite web|title=Sega announces drastic restructuring|author=Shahed Ahmed|publisher=[[GameSpot]]|url=http://www.gamespot.com/news/2680518.html|date=January 31, 2001|accessdate=September 20, 2009}}</ref> However, arcade development would continue unaffected. Sega is the world's most prolific arcade producer with 530 games as 73 franchises on 23 different arcade system boards since 1981, as of 2010<ref>http://www.guinnessworldrecords.com/world-records/most-prolific-producer-of-arcade-machines</ref>


Sega, along with their many software studios, are known for multi-million-selling game franchises including ''[[Sonic the Hedgehog (series)|Sonic the Hedgehog]]'', ''[[Virtua Fighter (series)|Virtua Fighter]]'', ''[[Phantasy Star (series)|Phantasy Star]]'', ''[[Yakuza (series)|Yakuza]]'', and ''[[Total War (series)|Total War]]''. Sega's head offices are located in [[Ōta, Tokyo|Ōta]], [[Tokyo]], Japan. Sega's European division, '''Sega Europe Ltd.''', is headquartered in the [[Brentford]] area of London in the United Kingdom.
Sega's head offices, as well as the main office of its domestic division, '''Sega Corporation''', formerly known as the {{nihongo|'''Sega Enterprises, Ltd.'''|株式会社セガ・エンタープライゼス|[[Kabushiki gaisha]] Sega Entāpuraizesu}}, are located in [[Ōta, Tokyo|Ōta]], [[Tokyo]], Japan. Sega's European division, '''Sega Europe Ltd.''', is headquartered in the [[Brentford]] area of London in the United Kingdom. Sega's North American division, '''Sega of America Inc.''', is headquartered in San Francisco, having moved there from [[Redwood City, California]] in 1999.<ref>"[http://www.sega.com/corporate/ Corporate]." ''Sega''. Retrieved on January 13, 2009.</ref><ref>Angwin, Julie and Laura Evenson. "[http://wayback.archive.org/web/20030729064053/http://www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/1998/06/11/BU14012.DTL Sega Expected to Move HQ To S.F. From Redwood City]." ''[[San Francisco Chronicle]]''. Thursday June 11, 1998. Retrieved on January 13, 2009.</ref> '''Sega Publishing Korea''' is headquartered in [[Jongno]], [[Seoul]], [[Korea]]. Sega's Australian & European operations outside of the United Kingdom closed on July 1, 2012 due to world economic pressures. Distribution of Sega products in Australia as of 1 July 2012 is handled by Five Star Games, made up of all the redundant employees from Sega Australia.<ref>{{cite web|author=General |url=http://www.vooks.net/sega-to-close-australian-and-multiple-european-offices/ |title=Sega to close Australian and multiple European offices - General and Nintendo News from |publisher=Vooks |date=2012-06-28 |accessdate=2012-11-09}}</ref>
Sega's North American division, '''Sega of America Inc.''', is headquartered in San Francisco, having moved there from [[Redwood City, California]] in 1999.<ref>"[http://www.sega.com/corporate/ Corporate]." ''Sega''. Retrieved on January 13, 2009.</ref><ref>Angwin, Julie and Laura Evenson. "[http://wayback.archive.org/web/20030729064053/http://www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/1998/06/11/BU14012.DTL Sega Expected to Move HQ To S.F. From Redwood City]." ''[[San Francisco Chronicle]]''. Thursday June 11, 1998. Retrieved on January 13, 2009.</ref> In 2015, the division will relocate to [[Southern California]].<ref>{{Cite journal|url = http://www.segasammy.co.jp/english/pdf/release/20150130_segareform_e_final.pdf|title = SegaRestructuring|last = |first = |date = 2015-01-31|journal = |doi = |pmid = |access-date = }}</ref>
'''Sega Publishing Korea''' is headquartered in [[Jongno]], [[Seoul]], [[Korea]]. Sega's Australian & European operations outside of the United Kingdom closed on July 1, 2012 due to world economic pressures. Distribution of Sega products in Australia as of July 2012 is handled by Five Star Games, made up of all the redundant employees from Sega Australia.<ref>{{cite web|author=General |url=http://www.vooks.net/sega-to-close-australian-and-multiple-european-offices/ |title=Sega to close Australian and multiple European offices - General and Nintendo News from |publisher=Vooks |date=2012-06-28 |accessdate=2012-11-09}}</ref>


==History==
==History==
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===Company origins (1940–1982)===
===Company origins (1940–1982)===
[[File:Slot machines at Wookey Hole Caves.JPG|thumb|SEGA Diamond 3 Star]]
[[File:Slot machines at Wookey Hole Caves.JPG|thumb|SEGA Diamond 3 Star|left]]
Sega's roots can be traced back to a company based in [[Honolulu]], [[Hawaii]] named '''Service Games''', which began operations in 1940. In 1951, Raymond Lemaire and Richard Stewart moved the company to Tokyo, Japan to develop and distribute coin-operated jukeboxes, games, and slot machines. Within a few years Service Games began importing these machines to American military bases throughout Japan.
Sega's roots can be traced back to a company based in [[Honolulu]], [[Hawaii]] named '''Service Games''', which began operations in 1940. In 1951, Raymond Lemaire and Richard Stewart moved the company to Tokyo, Japan to develop and distribute coin-operated jukeboxes, games, and slot machines. Within a few years Service Games began importing these machines to American military bases throughout Japan.


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===Entry into the home console market (1982–1989)===
===Entry into the home console market (1982–1989)===
In 1982, Sega's revenues would surpass $214&nbsp;million, and they introduced the industry's first three-dimensional game, ''[[SubRoc-3D|SubRoc 3D]]''. The following year, an overabundance of arcade games led to the [[video game crash of 1983|video game crash]], causing Sega's revenues to drop to $136&nbsp;million. Sega then pioneered the use of laser disks in the video game ''Astronbelt'', and designed and released its first home video game console, the [[SG-1000]] for the second generation of home consoles. Despite this, G&W sold the U.S. assets of Sega Enterprises that same year to pinball manufacturer [[Bally Manufacturing]], and in January 1984 Rosen resigned his post with the company.[[File:Sega-SG-1000-Console-Set.jpg|thumb|[[SG-1000]]|left|182x182px]]
[[File:Sega-SG-1000-Console-Set.jpg|thumb|[[SG-1000]]]]

In 1982, Sega's revenues would surpass $214&nbsp;million, and they introduced the industry's first three-dimensional game, ''[[SubRoc-3D|SubRoc 3D]]''. The following year, an overabundance of arcade games led to the [[video game crash of 1983|video game crash]], causing Sega's revenues to drop to $136&nbsp;million. Sega then pioneered the use of laser disks in the video game ''Astronbelt'', and designed and released its first home video game console, the [[SG-1000]] for the second generation of home consoles. Despite this, G&W sold the U.S. assets of Sega Enterprises that same year to pinball manufacturer [[Bally Manufacturing]], and in January 1984 Rosen resigned his post with the company.


The Japanese assets of Sega were purchased for $38&nbsp;million by a group of investors led by Rosen, Robert Deith, and Hayao Nakayama, a Japanese businessman who owned Esco Boueki (Esco Trading) an arcade game distribution company<ref name="nytimes.com">"[http://www.nytimes.com/1993/07/04/business/sega-takes-aim-at-disney-s-world.html?pagewanted=4 Sega Takes Aim at Disney's World (Page 4 of 4)]" ''[[The New York Times]]'' by Andrew Pollack: Sunday, July 4, 1993</ref> that had been acquired by Rosen in 1979. Nakayama became the new CEO of Sega, Robert Deith Chairman of the Board, and Rosen became head of its subsidiary in the United States.
The Japanese assets of Sega were purchased for $38&nbsp;million by a group of investors led by Rosen, Robert Deith, and Hayao Nakayama, a Japanese businessman who owned Esco Boueki (Esco Trading) an arcade game distribution company<ref name="nytimes.com">"[http://www.nytimes.com/1993/07/04/business/sega-takes-aim-at-disney-s-world.html?pagewanted=4 Sega Takes Aim at Disney's World (Page 4 of 4)]" ''[[The New York Times]]'' by Andrew Pollack: Sunday, July 4, 1993</ref> that had been acquired by Rosen in 1979. Nakayama became the new CEO of Sega, Robert Deith Chairman of the Board, and Rosen became head of its subsidiary in the United States.
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In 1984, the multibillion dollar Japanese conglomerate [[CSK Holdings Corporation|CSK]] bought Sega, renamed it to Sega Enterprises Ltd., headquartered it in Japan, and two years later, shares of its stock were being traded on the [[Tokyo Stock Exchange]]. David Rosen's friend, [[Isao Okawa]], the chairman of CSK, became chairman of Sega.
In 1984, the multibillion dollar Japanese conglomerate [[CSK Holdings Corporation|CSK]] bought Sega, renamed it to Sega Enterprises Ltd., headquartered it in Japan, and two years later, shares of its stock were being traded on the [[Tokyo Stock Exchange]]. David Rosen's friend, [[Isao Okawa]], the chairman of CSK, became chairman of Sega.


In 1986, Sega of America was poised to take advantage of the resurgent video game market in the United States.
[[File:Sega-Master-System-Set.jpg|thumb|[[Sega Master System]]|left|216x216px]]In 1986, Sega of America was poised to take advantage of the resurgent video game market in the United States.


[[File:Sega-Master-System-Set.jpg|thumb|[[Sega Master System]]]]
Sega would also release the [[Sega Master System]] and the first [[Alex Kidd]] game, who would be Sega's unofficial [[mascot]] until 1991, when [[Sonic the Hedgehog (character)|Sonic the Hedgehog]] took over. While the Master System was technically superior to the [[Nintendo Entertainment System|NES]],<ref>{{cite web|url=http://classicgaming.gamespy.com/View.php?view=ConsoleMuseum.Detail&id=28&game=10 |title=Sega Master System (SMS) – 1986–1989|publisher=Classicgaming.gamespy.com |accessdate=February 23, 2011}}</ref> it failed to capture market share in North America and Japan due to highly aggressive strategies by [[Nintendo]] and ineffective marketing by [[Tonka]] (which marketed the console on behalf of SEGA in the United States). However, the Master System was highly successful in Europe, Australia, New Zealand, and Brazil with games still being sold well into the 1990s alongside the Mega Drive and Nintendo's NES and SNES.
Sega would also release the [[Sega Master System]] and the first [[Alex Kidd]] game, who would be Sega's unofficial [[mascot]] until 1991, when [[Sonic the Hedgehog (character)|Sonic the Hedgehog]] took over. While the Master System was technically superior to the [[Nintendo Entertainment System|NES]],<ref>{{cite web|url=http://classicgaming.gamespy.com/View.php?view=ConsoleMuseum.Detail&id=28&game=10 |title=Sega Master System (SMS) – 1986–1989|publisher=Classicgaming.gamespy.com |accessdate=February 23, 2011}}</ref> it failed to capture market share in North America and Japan due to highly aggressive strategies by [[Nintendo]] and ineffective marketing by [[Tonka]] (which marketed the console on behalf of SEGA in the United States). However, the Master System was highly successful in Europe, Australia, New Zealand, and Brazil with games still being sold well into the 1990s alongside the Mega Drive and Nintendo's NES and SNES.

==== Amusement business (1982–1989) ====
Sega released the first "full body experience" titles<ref>GameCenter CX - 2nd Season, Episode 13</ref>(''[[Hang-On]]'' and ''[[After Burner]]'') that make use of [[hydraulic]] cabinet functionality and [[Force feedback|force feedback control]]. Sega also released the 360 degree rotating machine [[R-360]]. For arcade system boards, Sega released the [[List of Sega arcade system boards#Sega System series|System]] series and the [[List of Sega arcade system boards#Super Scaler series|Super Scaler]] series. [[UFO Catcher]] was introduced in 1985 and is Japan's most commonly installed [[claw crane]] game.<ref>{{Cite web|url = http://www.segasammy.co.jp/english/ir/library/pdf/printing_annual/2005/e_2005_annual.pdf|title = Page 22 Sega Sammy Report|date = |accessdate = |website = |publisher = |last = |first = }}</ref> Sega was also one of the first to introduce [[Medal game|medal games]] with ''World Bingo'' and ''World Derby'' in the 1980's, a sub-industry within Japanese arcades up to it's current day.


===Expansion (1989–2001)===
===Expansion (1989–2001)===


====Sega Genesis====
====Sega Genesis====
[[File:Sega-Genesis-Mod2-Set.jpg|thumb|left|[[Sega Genesis]], second North American version.]]{{Main|Sega Genesis}}[[File:Sonic 1991.png|thumb|[[Sonic the Hedgehog (character)|Sonic the Hedgehog]] has been Sega's mascot since the character's introduction in 1991.|192x192px]]With the introduction of the Sega Genesis in America, Sega of America launched an anti-[[Nintendo]] campaign to carry the momentum to the new generation of games, with its slogan "Genesis does what Nintendon't." This was initially implemented by Sega of America President Michael Katz.<ref>{{cite web|url=http://wayback.archive.org/web/20110816074702/http://www.sega-16.com/feature_page.php?id=103&title=Interview:%20Michael%20Katz|title=Interview: Michael Katz|first=Ken|last=Horowitz|publisher=Sega-16.com|accessdate=March 28, 2009|date=April 28, 2006}}</ref> When Nintendo launched its [[Super Nintendo Entertainment System]] in 1991, Sega changed its slogan to "Welcome to the next level."
{{Main|Sega Genesis}}
[[File:Sega-Genesis-Mod2-Set.jpg|thumb|left|[[Sega Genesis]], second North American version.]]
[[File:Sonic 1991.png|thumb|upright|[[Sonic the Hedgehog (character)|Sonic the Hedgehog]] has been Sega's mascot since the character's introduction in 1991.]]
With the introduction of the Sega Genesis in America, Sega of America launched an anti-[[Nintendo]] campaign to carry the momentum to the new generation of games, with its slogan "Genesis does what Nintendon't." This was initially implemented by Sega of America President Michael Katz.<ref>{{cite web|url=http://wayback.archive.org/web/20110816074702/http://www.sega-16.com/feature_page.php?id=103&title=Interview:%20Michael%20Katz|title=Interview: Michael Katz|first=Ken|last=Horowitz|publisher=Sega-16.com|accessdate=March 28, 2009|date=April 28, 2006}}</ref> When Nintendo launched its [[Super Nintendo Entertainment System]] in 1991, Sega changed its slogan to "Welcome to the next level."


The same year, Sega of America's leadership passed from Michael Katz to Tom Kalinske, who further escalated the "[[console wars|console war]]" that was developing.<ref>{{cite web|url=http://wayback.archive.org/web/20090207173158/http://www.sega-16.com/feature_page.php?id=245&title=Tom%20Kalinske:%20American%20Samurai|title=Tom Kalinske: American Samurai|author=Ken Horowitz|publisher=Sega-16.com|accessdate=March 28, 2009|date=February 18, 2005}}</ref> As a preemptive strike against the release of the SNES, Sega re-branded itself with a new game and mascot, [[Sonic the Hedgehog (1991 video game)|Sonic the Hedgehog]]. This shift led to a wider success for the Genesis and would eventually propel Sega to 65% of the market in North America for a brief time. Simultaneously, after much previous delay, Sega released the moderately successful [[Sega Mega-CD|Mega-CD]] as an add-on feature, allowing for extra storage in games due to their CD-ROM format, giving developers the ability to make longer, more sophisticated games, the most popular of which was Sega's own ''[[Sonic CD]]''.<ref>{{cite web|url=http://www.gamespot.com/games.html?type=games&platform=1002|title=Top Sega CD Games – Best Sega CD Video Games – Best Sega CD Games – Top Sega CD Video Games |publisher=Gamespot.com|accessdate=February 23, 2011}}</ref> ''[[Sonic the Hedgehog 2 (16-bit)|Sonic the Hedgehog 2]]'' was also released at this time, and became the most successful game Sega ever made,<ref name='gamasutra.com'>{{cite web|url=http://www.gamasutra.com/view/feature/1851/a_detailed_crossexamination_of_.php|title=A Detailed Cross-Examination of Yesterday and Today's Best-Selling Platform Games|accessdate=February 14, 2011|last=Boutros|first=Daniel|date=August 4, 2006|work=[[United Business Media|UBM]]|publisher=Gamasutra}}</ref> selling six million copies as of June 2006.<ref name="gamasutra.com"/>
The same year, Sega of America's leadership passed from Michael Katz to Tom Kalinske, who further escalated the "[[console wars|console war]]" that was developing.<ref>{{cite web|url=http://wayback.archive.org/web/20090207173158/http://www.sega-16.com/feature_page.php?id=245&title=Tom%20Kalinske:%20American%20Samurai|title=Tom Kalinske: American Samurai|author=Ken Horowitz|publisher=Sega-16.com|accessdate=March 28, 2009|date=February 18, 2005}}</ref> As a preemptive strike against the release of the SNES, Sega re-branded itself with a new game and mascot, [[Sonic the Hedgehog (1991 video game)|Sonic the Hedgehog]]. This shift led to a wider success for the Genesis and would eventually propel Sega to 65% of the market in North America for a brief time. Simultaneously, after much previous delay, Sega released the moderately successful [[Sega Mega-CD|Mega-CD]] as an add-on feature, allowing for extra storage in games due to their CD-ROM format, giving developers the ability to make longer, more sophisticated games, the most popular of which was Sega's own ''[[Sonic CD]]''.<ref>{{cite web|url=http://www.gamespot.com/games.html?type=games&platform=1002|title=Top Sega CD Games – Best Sega CD Video Games – Best Sega CD Games – Top Sega CD Video Games |publisher=Gamespot.com|accessdate=February 23, 2011}}</ref> ''[[Sonic the Hedgehog 2 (16-bit)|Sonic the Hedgehog 2]]'' was also released at this time, and became the most successful game Sega ever made,<ref name="gamasutra.com">{{cite web|url=http://www.gamasutra.com/view/feature/1851/a_detailed_crossexamination_of_.php|title=A Detailed Cross-Examination of Yesterday and Today's Best-Selling Platform Games|accessdate=February 14, 2011|last=Boutros|first=Daniel|date=August 4, 2006|work=[[United Business Media|UBM]]|publisher=Gamasutra}}</ref> selling six million copies as of June 2006.<ref name="gamasutra.com" />


In 1994, Sega released the [[Sega 32X]] in an attempt to upgrade the [[Sega Genesis|Mega Drive]] to the standards of more advanced systems. It sold well initially, but had problems with lack of software and hype about the upcoming [[Sega Saturn]] and [[Sony]]'s [[PlayStation]].<ref>{{cite web|url=http://www.thegameconsole.com/videogames94.htm |title=A History of Home Video Games from Atari to Xbox, Playstation and Wii|publisher=Thegameconsole.com|accessdate=February 23, 2011}}</ref> Within a year, it was in the bargain bins of many stores.<ref>{{cite web|url=http://www.planetdreamcast.com/about/sega/ |title=PlanetDreamcast: About – Sega History |date=June 16, 2008|accessdate=February 23, 2011|archiveurl=http://web.archive.org/web/20080616093349/http://www.planetdreamcast.com/about/sega/ |archivedate=June 16, 2008}}</ref> Also in 1994, Sega launched the [[Sega Channel]], a subscription gaming service delivered by local cable companies affiliated with [[Time-Warner]] [[Cable]], or TCI, through which subscribers received a special cartridge adapter that connected to the cable connection. At its peak, the Sega Channel had approximately 250,000 subscribers.<ref>{{cite web|last=Buchanan|first=Levi |url=http://retro.ign.com/articles/880/880968p1.html|title=The SEGA Channel – Retro Feature at IGN|publisher=Retro.ign.com|date=June 11, 2008|accessdate=February 23, 2011}}</ref>
In 1994, Sega released the [[Sega 32X]] in an attempt to upgrade the [[Sega Genesis|Mega Drive]] to the standards of more advanced systems. It sold well initially, but had problems with lack of software and hype about the upcoming [[Sega Saturn]] and [[Sony]]'s [[PlayStation]].<ref>{{cite web|url=http://www.thegameconsole.com/videogames94.htm |title=A History of Home Video Games from Atari to Xbox, Playstation and Wii|publisher=Thegameconsole.com|accessdate=February 23, 2011}}</ref> Within a year, it was in the bargain bins of many stores.<ref>{{cite web|url=http://www.planetdreamcast.com/about/sega/ |title=PlanetDreamcast: About – Sega History |date=June 16, 2008|accessdate=February 23, 2011|archiveurl=http://web.archive.org/web/20080616093349/http://www.planetdreamcast.com/about/sega/ |archivedate=June 16, 2008}}</ref> Also in 1994, Sega launched the [[Sega Channel]], a subscription gaming service delivered by local cable companies affiliated with [[Time-Warner]] [[Cable]] or [[Tele-Communications Inc.|TCI]], through which subscribers received a special cartridge adapter that connected to the cable connection. At its peak, the Sega Channel had approximately 250,000 subscribers.<ref>{{cite web|last=Buchanan|first=Levi |url=http://retro.ign.com/articles/880/880968p1.html|title=The SEGA Channel – Retro Feature at IGN|publisher=Retro.ign.com|date=June 11, 2008|accessdate=February 23, 2011}}</ref>


====Sega versus Accolade====
'''Sega versus Accolade'''
In 1992, Sega lost the ''[[Sega v. Accolade]]'' case, which involved independently produced software for the Sega Mega Drive/Genesis console. [[Accolade (game company)|Accolade]] had copied a small amount of Sega's code to achieve compatibility with the Sega Genesis platform. The verdict set a precedent that [[copyright]]s do not extend to non-expressive content in software for which a system is required to run the software.<ref>{{cite web|url=http://cse.stanford.edu/class/cs201/projects-99-00/intellectual-property-law/reverse_engineering.htm |title=Reverse Engineering |date=June 11, 2007 |accessdate=February 23, 2011 |archiveurl=http://web.archive.org/web/20070611160338/http://cse.stanford.edu/class/cs201/projects-99-00/intellectual-property-law/reverse_engineering.htm |archivedate=June 11, 2007}}</ref> The case in question stems from the nature of the console video game market. Hardware companies often sell their systems at or below cost, and rely on other revenue streams such as in this case, game licensing. Sega was attempting to "lock out" game companies from making Mega Drive games unless they paid Sega a fee (something its competition has done in the past). Their strategy was to make the hardware reject any cartridge that did not include a Sega trademark. If an unlicensed company included this trademark in their game, Sega could sue the company for trademark infringement. Though Sega lost this lawsuit, all later Sega systems seemed to incorporate similar hardware requirements.{{citation needed|date=January 2014}}


In 1992, Sega lost the Sega v. Accolade case, which involved independently produced software for the Sega Mega Drive/Genesis console. Accolade had copied a small amount of Sega's code to achieve compatibility with the Sega Genesis platform. The verdict set a precedent that copyrights do not extend to non-expressive content in software for which a system is required to run the software.[15] The case in question stems from the nature of the console video game market. Hardware companies often sell their systems at or below cost, and rely on other revenue streams such as in this case, game licensing. Sega was attempting to "lock out" game companies from making Mega Drive games unless they paid Sega a fee (something its competition has done in the past). Their strategy was to make the hardware reject any cartridge that did not include a Sega trademark. If an unlicensed company included this trademark in their game, Sega could sue the company for trademark infringement. Though Sega lost this lawsuit, all later Sega systems seemed to incorporate similar hardware requirements.[[File:Sega-Saturn-Console-Kit.jpg|thumb|A "Round Button" [[Sega Saturn]]|left]]
====Saturn====
====Saturn====
{{Main|Sega Saturn}}On May 11, 1995, Sega released the [[Sega Saturn]] (with ''[[Virtua Fighter (arcade game)|Virtua Fighter]]'') in the American market. Sega's first CD console that was not an add on, utilized two 32-bit processors and preceded both the [[Sony PlayStation]] and the [[Nintendo 64]]. However, poor sales in the West (including the traditional stronghold markets in Europe) led to the console being abandoned. The lack of a strong Sonic title (and titles based on other Genesis franchises) and its high price in comparison to the [[PlayStation]] were among the reasons for the failure of the console.<ref>[http://retro.ign.com/articles/950/950189p1.html "What Hath Sonic Wrought? Vol. 10."] Buchanan, Levi. IGN. February 2, 2009. "There are a number of reasons why the SEGA Saturn failed. The botched surprise launch. Lack of third-party support. And while the lack of a true Sonic sequel for the Saturn certainly didn't wholly destroy the console's chances, the lack of appearances by the SEGA mascot sure didn't help matters much. Nintendo had proven up to this generation the value of launching with a mascot game. The accelerated launch isn't to blame for the critical oversight, either. During its truncated lifecycle, the Saturn hosted not one Sonic platformer."</ref> Notable titles include several titles exclusive to the Japanese market, like ''[[Radiant Silvergun]]'' and ''[[Sakura Wars|Sakura Taisen]]'', involving fighting games like ''[[Last Bronx]]'', rail shooters, such as ''[[Panzer Dragoon]]'' and ''[[The House of the Dead (video game)|The House of the Dead]]'' and a few well regarded RPGs; ''[[Panzer Dragoon Saga]]'', ''[[Grandia]]'', ''[[Albert Odyssey: Legend of Eldean]]'', ''[[Shining Force III]]'', ''[[Dragon Force]]'', ''[[Shining Wisdom]]'', ''[[Shining the Holy Ark]]'' and ''[[Magic Knight Rayearth]]''. ''[[Tomb Raider]]'' was initially developed with the Sega Saturn in mind, but was quickly ported to the Sony [[PlayStation]]. With the Saturn's failure to attract the greater market share, development for the sequels were focused on Sony's console, and [[Lara Croft]] ironically became an unofficial mascot for the system.<ref>[http://segaretro.org/Tomb_Raider Tomb Raider]. Sega Retro. Retrieved on 2013-10-31.</ref>
{{Main|Sega Saturn}}
[[File:Sega-Saturn-Console-Kit.jpg|thumb|A "Round Button" [[Sega Saturn]]]]
On May 11, 1995, Sega released the [[Sega Saturn]] (with ''[[Virtua Fighter (arcade game)|Virtua Fighter]]'') in the American market. Sega's first CD console that was not an add on, utilized two 32-bit processors and preceded both the [[Sony PlayStation]] and the [[Nintendo 64]]. However, poor sales in the West (including the traditional stronghold markets in Europe) led to the console being abandoned.<ref name="ce2.coos-bay.k12.or.us">{{cite web|url=http://www.ce2.coos-bay.k12.or.us/Studentwebs/Danny/90s.htm|title=The 1990's|publisher=Ce2.coos-bay.k12.or.us|accessdate=February 23, 2011}}</ref> The lack of a strong Sonic title (and titles based on other Genesis franchises) and its high price in comparison to the [[PlayStation]] were among the reasons for the failure of the console.<ref>[http://retro.ign.com/articles/950/950189p1.html "What Hath Sonic Wrought? Vol. 10."] Buchanan, Levi. IGN. February 2, 2009. "There are a number of reasons why the SEGA Saturn failed. The botched surprise launch. Lack of third-party support. And while the lack of a true Sonic sequel for the Saturn certainly didn't wholly destroy the console's chances, the lack of appearances by the SEGA mascot sure didn't help matters much. Nintendo had proven up to this generation the value of launching with a mascot game. The accelerated launch isn't to blame for the critical oversight, either. During its truncated lifecycle, the Saturn hosted not one Sonic platformer."</ref> Notable titles include several titles exclusive to the Japanese market, like ''[[Radiant Silvergun]]'' and ''[[Sakura Wars|Sakura Taisen]]'', involving fighting games like ''[[Last Bronx]]'', rail shooters, such as ''[[Panzer Dragoon]]'' and ''[[The House of the Dead (video game)|The House of the Dead]]'' and a few well regarded RPGs; ''[[Panzer Dragoon Saga]]'', ''[[Grandia]]'', ''[[Albert Odyssey: Legend of Eldean]]'', ''[[Shining Force III]]'', ''[[Dragon Force]]'', ''[[Shining Wisdom]]'', ''[[Shining the Holy Ark]]'' and ''[[Magic Knight Rayearth]]''. ''[[Tomb Raider]]'' was initially developed with the Sega Saturn in mind, but was quickly ported to the Sony [[PlayStation]]. With the Saturn's failure to attract the greater market share, development for the sequels were focused on Sony's console, and [[Lara Croft]] ironically became an unofficial mascot for the system.<ref>[http://segaretro.org/Tomb_Raider Tomb Raider]. Sega Retro. Retrieved on 2013-10-31.</ref>


In 1997, Sega entered into a short-lived merger with [[Bandai]]. However it was later called off, citing "cultural differences" between the two companies.<ref>{{cite web|last=Johnston |first=Chris |url=http://www.gamespot.com/news/2466444.html |title=Sega, Bandai Merger Canceled – News at GameSpot |publisher=Gamespot.com |date=May 27, 1997 |accessdate=February 23, 2011}}</ref> Entertainment fun center [[GameWorks]] was founded in 1997 as well as the now defunct [[SegaWorld]] theme parks.
In 1997, Sega entered into a short-lived merger with [[Bandai]]. However it was later called off, citing "cultural differences" between the two companies.<ref>{{cite web|last=Johnston |first=Chris |url=http://www.gamespot.com/news/2466444.html |title=Sega, Bandai Merger Canceled – News at GameSpot |publisher=Gamespot.com |date=May 27, 1997 |accessdate=February 23, 2011}}</ref>


====Dreamcast====
====Dreamcast====
{{Main|Dreamcast}}
{{Main|Dreamcast}}
On November 27, 1998, Sega launched the [[Dreamcast]] game console, Sega's final console, in Japan. The [[Dreamcast]] was competitively priced, partly due to the use of off-the-shelf components, but it also featured technology that allowed for more technically impressive games than its direct competitors, the [[Nintendo 64]] and [[PlayStation]]. An analog 56k [[modem]] was also included, allowing gamers to play multi-player games online. Featuring titles such as the action-puzzle title ''[[ChuChu Rocket!]]'', ''[[Phantasy Star Online]]'', the first console-based [[Massively multiplayer online role-playing game|MMORPG]], "[[Quake 3 Arena]]" and the innovative ''[[Alien Front Online]]'', the first console game with online voice chat.[[File:Sega-dreamcast-set.png|thumb|Japanese/American Sega [[Dreamcast]] and European Controller with [[VMU]]. Notice the different color swirls |left]]The [[Dreamcast]]'s launch in Japan was a failure. Launching with a small library of software and in the shadow of the upcoming PS2, the system would not gain great success, despite several successful games in the region. The Western launch a year later was accompanied by a large amount of both first-party and third-party software and an aggressive marketing campaign. It was extremely successful and earned the distinction of "most successful hardware launch in history," selling a then-unprecedented 500,000 consoles in its first week in North America.<ref>{{cite web|url=http://www.vidgame.net/SEGA/DC.html|title=Vidgame.net: Sega Dreamcast |accessdate=February 23, 2011|archiveurl=http://web.archive.org/web/20080213224518/http://www.vidgame.net/SEGA/DC.html|archivedate=February 13, 2008}}</ref> On November 1, 2000, Sega changed its company name from '''Sega Enterprises, Ltd.''' to '''Sega Corporation.'''<ref>{{cite web|url=http://sega.jp/corp/release/2000/1101_1/ |title=Sega Enterprises, Ltd. Changes Company Name– Sega Corporation |publisher=Sega.jp |date=2000-11-01 |accessdate=2012-09-09}}</ref> Sega was able to hold onto this momentum in the US almost until the launch of Sony's [[PlayStation 2]]. The Dreamcast is home to several innovative and critically acclaimed games of the time, including one of the first [[cel-shaded]] titles, ''[[Jet Set Radio]]'' (''[[Jet Grind Radio]]'' in North America); ''[[Seaman (video game)|Seaman]]'', a game involving communication with a fish-type creature via microphone; ''[[Samba de Amigo]]'', a rhythm game involving the use of maracas, and ''[[Shenmue]]'', an adventure game of vast scope with [[open world|freeform gameplay]] and a striking attempt at creating a detailed in-game city.
[[File:Sega-dreamcast-set.png|thumb|Japanese/American Sega [[Dreamcast]] and European Controller with [[VMU]]. Notice the different color swirls ]]
On November 27, 1998, Sega launched the [[Dreamcast]] game console, Sega's final console, in Japan. The [[Dreamcast]] was competitively priced, partly due to the use of off-the-shelf components, but it also featured technology that allowed for more technically impressive games than its direct competitors, the [[Nintendo 64]] and [[PlayStation]]. An analog 56k [[modem]] was also included, allowing gamers to play multi-player games online. Featuring titles such as the action-puzzle title ''[[ChuChu Rocket!]]'', ''[[Phantasy Star Online]]'', the first console-based [[Massively multiplayer online role-playing game|MMORPG]], "[[Quake 3 Arena]]" and the innovative ''[[Alien Front Online]]'', the first console game with online voice chat.


Faced with debt and competition from Sony, Nintendo, and Microsoft, Sega discontinued the Dreamcast hardware in 2001. The final game Sega released for it was [[Puyo Puyo Fever]] in 2004.
Sega also converted their In-house R&D departments, AM1, AM2, AM3 etc. into 2nd party studios, resulting into the establishment of [[Sega Wow#Wow Entertainment|Wow Entertainment]], [[Amusement Vision]], [[Sega AM3#History|Hitmaker]], [[Smilebit]], [[Sega AM3#Sega Rosso|Sega Rosso]], and [[United Game Artists]].


'''Amusement business (1989–2001)'''
The [[Dreamcast]]'s launch in Japan was a failure. Launching with a small library of software and in the shadow of the upcoming PS2, the system would not gain great success, despite several successful games in the region. The Western launch a year later was accompanied by a large amount of both first-party and third-party software and an aggressive marketing campaign. It was extremely successful and earned the distinction of "most successful hardware launch in history," selling a then-unprecedented 500,000 consoles in its first week in North America.<ref>{{cite web|url=http://www.vidgame.net/SEGA/DC.html|title=Vidgame.net: Sega Dreamcast |accessdate=February 23, 2011|archiveurl=http://web.archive.org/web/20080213224518/http://www.vidgame.net/SEGA/DC.html|archivedate=February 13, 2008}}</ref> On November 1, 2000, Sega changed its company name from '''Sega Enterprises, Ltd.''' to '''Sega Corporation.'''<ref>{{cite web|url=http://sega.jp/corp/release/2000/1101_1/ |title=Sega Enterprises, Ltd. Changes Company Name– Sega Corporation |publisher=Sega.jp |date=2000-11-01 |accessdate=2012-09-09}}</ref> Sega was able to hold onto this momentum in the US almost until the launch of Sony's [[PlayStation 2]]. The Dreamcast is home to several innovative and critically acclaimed games of the time, including one of the first [[cel-shaded]] titles, ''[[Jet Set Radio]]'' (''[[Jet Grind Radio]]'' in North America); ''[[Seaman (video game)|Seaman]]'', a game involving communication with a fish-type creature via microphone; ''[[Samba de Amigo]]'', a rhythm game involving the use of maracas, and ''[[Shenmue]]'', an adventure game of vast scope with [[open world|freeform gameplay]] and a striking attempt at creating a detailed in-game city.


Sega introduced the [[List of Sega arcade system boards#Sega Model series|Model]] series of arcade hardware which saw the release of ''[[Virtua Fighter]]'' and ''[[Virtua Racing]] ''which laid the foundation for 3D racing and fighting games<ref>{{Cite web|url = http://web.archive.org/web/20100412225953/http://www.gamespot.com/gamespot/features/video/15influential/p13_01.html|title = GameSpot|date = |accessdate = |website = |publisher = |last = |first = }}</ref> The first ''[[Photobooth|Purikara]]'' machine in Japan was made jointly by [[Atlus]] and Sega in 1995. In 1996 Sega opened [[Joypolis]], with overseas variants called [[SegaWorld]], [[Sega Republic]], and [[Gameworks]]. Sega also released the [[List of Sega arcade system boards#Sega NAOMI series|NAOMI]] series, which were the last arcade boards built uniquely rather than being based on existing consoles and PC architecture. ''[[Derby Owners Club]] ''was the first large-scale arcade machine with IC cards, and [[Virtua Fighter 4|''Virtua Fighter 4'']] the first arcade game with internet functionality. Both of these features have become a staple in Japanese arcades.<ref name=":0">https://www.segasammy.co.jp/english/ir/library/pdf/printing_annual/2007/e_2007_annual.pdf Page 36</ref>
Faced with debt and competition from Sony, Nintendo, and Microsoft, Sega discontinued the Dreamcast hardware in 2001. The final game Sega released for it was [[Puyo Puyo Fever]] in 2004.


===Shift to third-party software developer (2001–2005)===
===Shift to third-party software developer (2001–2005)===
In late 1999, Sega Enterprises Chairman Isao Okawa spoke at an Okawa Foundation meeting, saying that Sega's focus in the future would shift from hardware to software, but adding that they were still fully behind the Dreamcast. On January 23, 2001, a story ran in ''[[Nihon Keizai Shimbun]]'' that said Sega was going to cease production of the Dreamcast and develop software for other platforms.<ref>{{cite web|title=Sega Sinks Console Efforts?|author=Brandon Justice|publisher=IGN |url=http://dreamcast.ign.com/articles/090/090435p1.html |date=January 23, 2001}}</ref> After the initial denial, Sega Japan then put out a press release confirming they were considering producing software for [[PlayStation 2]] and [[Game Boy Advance]] as part of their "New Management Policy".<ref>{{cite web|title=弊社ドリームキャスト事業に関する一部の報道について|publisher=Sega|url=http://sega.jp/corp/release/2001/0124/|date=January 24, 2001}}</ref><ref>{{cite web|title=Sega Confirms PS2 and Game Boy Advance Negotiations|author=Anoop Gantayat|publisher=IGN|url=http://dreamcast.ign.com/articles/090/090442p1.html|date=January 23, 2001}}</ref> Then on January 31, 2001, Sega of America officially announced they were becoming a third-party software publisher.<ref name="SegaRestructure"/>
[[File:Sega Annual Icome(Loss) 1993-2004.svg|thumb|229x229px|Sega's financial trouble in the 1998–2002 time periods. This financial data came from their Annual Reports.<ref>{{cite web|title=Sega Enterprises, Ltd. Annual Report 1998|publisher=Sega via [[Internet Archive]]|url=http://sega.jp/IR/en/ar/ar1998/ar98.pdf|archiveurl=http://web.archive.org/web/20020617182247/http://sega.jp/IR/en/ar/ar1998/ar98.pdf|archivedate=June 17, 2002|format=PDF}}</ref><ref>{{cite web|title=Sega Corporation Annual Report 2000|publisher=Sega via [[Sega Sammy Holdings]]|url=http://www.segasammy.co.jp/english/ir/pdf/ir/kako/sega_AR_all_2000.pdf|archiveurl=http://web.archive.org/web/20070925210504/http://www.segasammy.co.jp/english/ir/pdf/ir/kako/sega_AR_all_2000.pdf|archivedate=September 25, 2007|format=PDF|accessdate=March 12, 2010}}</ref><ref>{{cite web|title=Sega Corporation Annual Report 2002|publisher=Sega via [[Sega Sammy Holdings]]|url=http://wayback.archive.org/web/20120604222519/http://www.segasammy.co.jp/english/ir/pdf/ir/kako/sega_AR_all_2002.pdf|format=PDF|accessdate=March 12, 2010}}</ref><ref>{{cite web|title=Sega Corporation Annual Report 2004|publisher=Sega via [[Sega Sammy Holdings]]|url=http://www.segasammy.co.jp/english/ir/pdf/ir/kako/sega_AR_all_2004.pdf|archiveurl=http://www.webcitation.org/5mHPmG7gs|archivedate=December 25, 2009|format=PDF|accessdate=March 12, 2010}}</ref>]]In late 1999, Sega Enterprises Chairman Isao Okawa spoke at an Okawa Foundation meeting, saying that Sega's focus in the future would shift from hardware to software, but adding that they were still fully behind the Dreamcast. On January 23, 2001, a story ran in ''[[Nihon Keizai Shimbun]]'' that said Sega was going to cease production of the Dreamcast and develop software for other platforms.<ref>{{cite web|title=Sega Sinks Console Efforts?|author=Brandon Justice|publisher=IGN |url=http://dreamcast.ign.com/articles/090/090435p1.html |date=January 23, 2001}}</ref> After the initial denial, Sega Japan then put out a press release confirming they were considering producing software for [[PlayStation 2]] and [[Game Boy Advance]] as part of their "New Management Policy".<ref>{{cite web|title=弊社ドリームキャスト事業に関する一部の報道について|publisher=Sega|url=http://sega.jp/corp/release/2001/0124/|date=January 24, 2001}}</ref><ref>{{cite web|title=Sega Confirms PS2 and Game Boy Advance Negotiations|author=Anoop Gantayat|publisher=IGN|url=http://dreamcast.ign.com/articles/090/090442p1.html|date=January 23, 2001}}</ref> Then on January 31, 2001, Sega of America officially announced they were becoming a third-party software publisher.<ref name="SegaRestructure" />


The company has since developed primarily into a platform-neutral software company, known as a "third-party publisher", that creates games that will launch on a variety of game consoles produced by other companies, many of their former rivals, the first of which was a port of ''[[ChuChu Rocket!]]'' to Nintendo's [[Game Boy Advance]].
The company has since developed primarily into a platform-neutral software company, known as a "third-party publisher", that creates games that will launch on a variety of game consoles produced by other companies, many of their former rivals, the first of which was a port of ''[[ChuChu Rocket!]]'' to Nintendo's [[Game Boy Advance]].


By March 31, 2002, Sega had five consecutive fiscal years of net losses.<ref>"[http://www.taipeitimes.com/News/worldbiz/archives/2003/03/13/197881 Analysts say Sega taking its toll on CSK's bottom line]" ''[[Taipei Times]]'' via ''BLOOMBERG, Tokyo – Thursday, Mar 13, 2003, Page 12''</ref> To help with Sega's debt, CSK founder [[Isao Okawa]], before his death in 2001, gave the company a $695.7&nbsp;million private donation,<ref>"[http://edition.cnn.com/2001/BUSINESS/asia/03/18/tokyo.okawalegacy/index.html Late Sega exec leaves legacy, new leadership]" Tokyo, Japan [[CNN]] By Kristie Lu Stout – March 19, 2001</ref> and also talked to Microsoft about a sale or a merger with their Xbox division, but those talks failed.<ref>"[http://www.nytimes.com/2001/11/04/business/microsoft-explores-a-new-territory-fun.html?pagewanted=2 Microsoft Explores A New Territory: Fun (Page 2 of 5)]" ''[[The New York Times]]'' By Chris Gaither – November 4, 2001</ref> Discussions also took place with [[Namco]], [[Bandai]], [[Electronic Arts]] and again with [[Microsoft]].
[[Video game arcade cabinet|Arcade]] units are still being produced, first under the [[Sega NAOMI]] name, and then with subsequent releases of the [[Sega NAOMI 2]], [[Sega Hikaru]], [[Sega Chihiro]], [[Triforce (arcade system board)|Triforce]] (in collaboration with [[Nintendo]] and [[Namco]]), [[Sega Lindbergh]], and more recently, [[List of Sega arcade system boards#RingEdge|RingEdge]].


In August 2003, Sammy bought the outstanding 22% of shares that CSK had,<ref name='Sammy-Sega-merging'>{{cite news|first=Hirohiko|last=Niizumi|author2=Tor Thorsen |title=Sammy merging with Sega|date=May 18, 2004|url=http://www.gamespot.com/news/2004/05/18/news_6098677.html|archiveurl=http://web.archive.org/web/20081006132850/http://www.gamespot.com/news/2004/05/18/news_6098677.html|archivedate=2008-10-06|work=[[GameSpot]]|accessdate=February 18, 2011|quote=$1.45&nbsp;billion deal will see the Sonic publisher become a subsidiary of a new Sammy-controlled company.}}</ref> and Sammy chairman Hajime Satomi became CEO of Sega.
[[File:Sega Annual Icome(Loss) 1993-2004.svg|thumb|300px|Sega's financial trouble in the 1998–2002 time periods. This financial data came from their Annual Reports.<ref>{{cite web|title=Sega Enterprises, Ltd. Annual Report 1998|publisher=Sega via [[Internet Archive]]|url=http://sega.jp/IR/en/ar/ar1998/ar98.pdf|archiveurl=http://web.archive.org/web/20020617182247/http://sega.jp/IR/en/ar/ar1998/ar98.pdf|archivedate=June 17, 2002|format=PDF}}</ref><ref>{{cite web|title=Sega Corporation Annual Report 2000|publisher=Sega via [[Sega Sammy Holdings]]|url=http://www.segasammy.co.jp/english/ir/pdf/ir/kako/sega_AR_all_2000.pdf|archiveurl=http://web.archive.org/web/20070925210504/http://www.segasammy.co.jp/english/ir/pdf/ir/kako/sega_AR_all_2000.pdf|archivedate=September 25, 2007|format=PDF|accessdate=March 12, 2010}}</ref><ref>{{cite web|title=Sega Corporation Annual Report 2002|publisher=Sega via [[Sega Sammy Holdings]]|url=http://wayback.archive.org/web/20120604222519/http://www.segasammy.co.jp/english/ir/pdf/ir/kako/sega_AR_all_2002.pdf|format=PDF|accessdate=March 12, 2010}}</ref><ref>{{cite web|title=Sega Corporation Annual Report 2004|publisher=Sega via [[Sega Sammy Holdings]]|url=http://www.segasammy.co.jp/english/ir/pdf/ir/kako/sega_AR_all_2004.pdf|archiveurl=http://www.webcitation.org/5mHPmG7gs|archivedate=December 25, 2009|format=PDF|accessdate=March 12, 2010}}</ref>]]By March 31, 2002, Sega had five consecutive fiscal years of net losses.<ref>"[http://www.taipeitimes.com/News/worldbiz/archives/2003/03/13/197881 Analysts say Sega taking its toll on CSK's bottom line]" ''[[Taipei Times]]'' via ''BLOOMBERG, Tokyo – Thursday, Mar 13, 2003, Page 12''</ref> To help with Sega's debt, CSK founder [[Isao Okawa]], before his death in 2001, gave the company a $695.7&nbsp;million private donation,<ref>"[http://edition.cnn.com/2001/BUSINESS/asia/03/18/tokyo.okawalegacy/index.html Late Sega exec leaves legacy, new leadership]" Tokyo, Japan [[CNN]] By Kristie Lu Stout – March 19, 2001</ref> and also talked to Microsoft about a sale or a merger with their Xbox division, but those talks failed.<ref>"[http://www.nytimes.com/2001/11/04/business/microsoft-explores-a-new-territory-fun.html?pagewanted=2 Microsoft Explores A New Territory: Fun (Page 2 of 5)]" ''[[The New York Times]]'' By Chris Gaither – November 4, 2001</ref> On February 13, 2003, Sega announced plans to merge with [[Sammy Corporation|Sammy]], but plans fell through.{{Contradiction-inline|reason=Two paragraphs down Sammy chairman became Sega CEO; later "following the Sega-Sammy merger"?|date=August 2013}} Discussions also took place with [[Namco]], [[Bandai]], [[Electronic Arts]] and again with [[Microsoft]].


During mid-2004, Sammy bought a controlling share in Sega Corporation at a cost of $1.1 billion, creating the new company Sega Sammy Holdings, one of the biggest game manufacturing companies in the world.
The shift to software development affected Sega's Australian operations. [[Sega Ozisoft]] ceased to operate in its current form with Sega Enterprises selling its share in Sega Ozisoft and was bought over by [[Infogrames]] in 2002. This led to Infogrames having an Australian presence for the first time but decided to change the company name for its Australian operations to GameNation. Sega then went to find an Australian distributor, and made a deal with [[THQ]] Asia Pacific, who at the time until 2006 had deals with Capcom. In 2003 GameNation was changed to [[Atari Australia]] and then challenged THQ Asia Pacific to the distribution rights to Sega's IP's in Australia but failed. In early 2008 Sega Corporation announced that Sega would re-establish an Australian presence, effectively ending THQ's distribution of Sega's products in Australia and would be a subsidiary of Sega of Europe, rather than being a separate local subsidiary like [[Atari Australia]], [[Nintendo Australia]] and THQ Asia Pacific.


'''Amusement business (2001–2005)'''
In August 2003, Sammy bought the outstanding 22% of shares that CSK had,<ref name='Sammy-Sega-merging'>{{cite news|first=Hirohiko|last=Niizumi|author2=Tor Thorsen |title=Sammy merging with Sega|date=May 18, 2004|url=http://web.archive.org/web/20081006132850/http://www.gamespot.com/news/2004/05/18/news_6098677.html|work=[[GameSpot]]|accessdate=February 18, 2011|quote=$1.45&nbsp;billion deal will see the Sonic publisher become a subsidiary of a new Sammy-controlled company.}}</ref> and Sammy chairman Hajime Satomi became CEO of Sega. With the Sammy chairman at the helm of Sega, it has been stated that Sega's activity will focus on its profit-making arcade business rather than its loss-making home software development. In late December, Sega released ''[[Sonic Heroes]]'' selling over 2 million copies. It was the first multi-platform Sonic game, with identical versions on the [[Xbox (console)|Xbox]], the PlayStation 2, and the [[GameCube]].


After the decline of the global arcade industry around the 21st century<ref>{{Cite news|url = http://www.eastvalleytribune.com/article_9b22d9ea-1810-5465-8bd9-a4e3204de569.html?mode=story|title = Video killed the arcade star|last = 20 April 2006|first = |date = |work = |access-date = 7 March 2012}}</ref> Sega introduced several novel concepts tailored to the japanese market such as [[Collectible card games#Arcade|trading card game machines]], which includes ''[[World Club Champion Football]] ''for general audiences'' and[[Mushiking: King of the Beetles| ''Mushiking: The King of the Beetles'']]'' for young children. Sega also further enhanced internet functionality in arcades with [[ALL.Net]], introduced in 2004.<ref name=":0">https://www.segasammy.co.jp/english/ir/library/pdf/printing_annual/2007/e_2007_annual.pdf Page 36</ref>
In 2003, [[Sega Wow#Wow Entertainment|Wow Entertainment]] and [[Overworks]] were merged, as well as [[Sonic Team]] with [[United Game Artists]] and [[Hit Maker (video game developer)|Hitmaker]] with [[Sega Rosso]].


===2005–current===
On July 1, 2004, Sega's 2nd party studios, [[Sega Wow#Wow Entertainment|Wow Entertainment]], [[Amusement Vision]], [[Sega AM3#History|Hitmaker]], [[Smilebit]], [[Sega AM3#Sega Rosso|Sega Rosso]], [[United Game Artists]] and [[Sega AM2|AM2]] were reintegrated into Sega again, following the Sega-Sammy merger.
{{Primary sources|section about Sega's history and activity from 2005 to present day|date=March 2015}}
{{Copyedit section|date=February 2015}} In 2005, Sega sold most of its major western studio [[Visual Concepts]] to [[Take Two Interactive]]. In 2006, Sega Europe purchased [[Sports Interactive]], known for its [[Football Manager|''Football Manager'']] series, and [[Creative Assembly]], known for its [[Total War|''Total War'']] series. In the same year, the [[Sega Racing Studio]] was also formed. Sega of America purchased [[Secret Level]] in 2006, which was renamed to [[Secret Level|Sega Studio San Francisco]] in 2008. In early 2008 Sega announced that Sega would re-establish an Australian presence, as a subsidiary of Sega of Europe, with a development studio branded as Sega Studio Australia. In 2013, following [[THQ|THQ's]] bankruptcy, Sega bought [[Relic Entertainment]], known for its [[Company of Heroes|''Company of Heroes'']] series.<ref>http://www.segasammy.co.jp/english/pr/corp/history/</ref> Sega has collaborated with many western studios such as [[Bizarre Creations]], [[Backbone Entertainment]], [[Monolith]], [[Sumo Digital]], [[Kuju Entertainment]], [[Obsidian Entertainment]] and [[Gearbox Software]]. After the release of ''[[Sega Rally Revo]]'', Sega shut down their [[Sega Racing Studio]], following the closure of [[Secret Level|Sega Studio San Francisco]] in 2010 and Sega Studio Australia in 2012.


[[Sonic the Hedgehog (series)|Sonic the Hedgehog]] continues to be an internationally recognised series, having sold 150 million units of the franchise.<ref name="segasammy.co.jp">http://www.segasammy.co.jp/english/ir/library/pdf/printing_annual/2014/all_ar2014_e.pdf</ref> The reception of games has ranged from negative,<ref>http://www.metacritic.com/game/xbox-360/sonic-the-hedgehog</ref><ref>http://www.metacritic.com/game/wii-u/sonic-boom-rise-of-lyric</ref> mixed,<ref>http://www.metacritic.com/game/xbox-360/sonic-unleashed</ref><ref>http://www.metacritic.com/game/wii-u/sonic-lost-world</ref> to generally positive.<ref>http://www.metacritic.com/game/wii/sonic-colors</ref><ref>http://www.metacritic.com/game/xbox-360/sonic-generations</ref> In 2007, Sega and [[Nintendo]] teamed up using Sega's acquired [[Olympic Games|Olympic]] license, to create the ''[[Mario and Sonic|Mario and Sonic at the Olympic Games]]'' series, which has sold 20 million as of the latest installment. In the console and handheld business, Sega of Japan found success with the ''[[Ryu Ga Gotoku]]'' series (''[[Yakuza (series)|Yakuza]]'' overseas) and ''[[Hatsune Miku: Project DIVA]]'' series of games, and other games aimed at the Japanese market. Due to decline of packaged game sales both domestically and overseas<ref>{{Cite web|title = Sega To Shift Focus To Digital And Social As Packaged Game Sales Decline|url = http://www.siliconera.com/2012/05/11/sega-to-shift-focus-to-digital-and-social-as-packaged-game-sales-decline/|accessdate = 2015-04-08}}</ref>, Sega has had a number of layoffs in 2012<ref>{{Cite web|title = Sega Cancelling Games, Planning Layoffs|url = http://www.pcmag.com/article2/0,2817,2402442,00.asp|accessdate = 2015-04-08}}</ref> and 2015<ref>{{Cite web|title = http://fs.magicalir.net/tdnet/2015/6460/20150130014909.pdf|url = http://fs.magicalir.net/tdnet/2015/6460/20150130014909.pdf|website = fs.magicalir.net|accessdate = 2015-04-08}}</ref> in order to focus on the digital game market. In the digital game market, Sega's biggest success is the [[F2P]] [[Massive Multiplayer Online Role-Playing Game|MMO]] ''[[Phantasy Star Online 2]]'', along with the mobile games ''[[:ja:チェインクロニクル|Chain Chronicle]]'' and ''[[Puyopuyo!! Quest]]''. In Japan, Sega distributes titles from smaller Japanese game developers and localizations of western titles.<ref>http://sega.jp/cgi-bin/csALL.cgi</ref><ref>http://sega.jp/pc/baldurs/</ref>In 2012, [[Index Corporation]] has negotiated with Sega to distribute titles in Japan. In 2013, [[Index Corporation]] was purchased by [[Sega Sammy]].<ref>[http://www.destructoid.com/atlus-extremely-happy-to-join-forces-with-sega-262154.phtml Previous relationship with Sega, in Atlus CEO statement]</ref> In 2014, Sega officially split [[Index Corporation|Index]] game business and miscellaneous businesses, making [[Atlus]], the video game developer and publisher, a wholly subsidiary of Sega.<ref>{{Cite web|url = http://sega.co.jp/wp-content/uploads/2014/03/nr140218_1.pdf|title = |date = |accessdate = |website = |publisher = |last = |first = }}</ref> Atlus is known for it's [[Megami Tensei]] and [[Shin Megami Tensei: Persona|''Persona'']] series of role-playing games. In the 2010s Sega established several operational firms for its mobile phone, theme park and arcade businesses, in order to streamline operations and avoid prior losses. In 2012, Sega established '''Sega Networks Co., Ltd.''' for its mobile phone business; although separate at first, it merged with Sega in 2015, and established '''Sega Games Co., Ltd'''. These new divisions will replace the former '''Sega Corporation''', and the new '''Sega Holdings Co., Ltd '''will contain all entertainment companies from the [[Sega Sammy Holdings|Sega Sammy]] group.<ref>{{Cite web|title = http://www.segasammy.co.jp/english/pdf/release/20150212_organizational%20restructuring_e_final.pdf|url = http://www.segasammy.co.jp/english/pdf/release/20150212_organizational%20restructuring_e_final.pdf|website = www.segasammy.co.jp|accessdate = 2015-04-05}}</ref>
During mid-2004, Sammy bought a controlling share in Sega Corporation at a cost of $1.1&nbsp;billion, creating the new company [[Sega Sammy Holdings]], one of the biggest game manufacturing companies in the world.


'''Amusement business (2005–current)'''
On January 25, 2005, Sega's [[Visual Concepts]], a studio Sega dubbed a "1.5" developer, was sold to [[Take-Two Interactive]]. Sega used the parlance "1.5" as a midpoint of sorts between first-party and second-party developer status: that is, a wholly owned studio that would otherwise be known as a first-party developer, but was outside of internal development teams. Visual Concepts was known for many Sega Sports games including the ''[[ESPN NFL Football]]'' series, formerly ''NFL2K''. The sale also came with Visual Concept's wholly owned subsidiary [[Kush Games]]. Take Two subsequently announced the start of the publishing label [[2K Games]] because of this purchase.


[[Hajime Satomi]], the chairman of [[Sega Sammy Holdings|SEGA Sammy Holdings]] stated that Sega's activity will focus on their profit-making arcade business as opposed to their loss-making home software development.<ref>http://www.eurogamer.net/articles/news111203sammysega</ref> Sega continued to develop games based on network and card aspects, in management, strategy and more action oriented genres. Games of this type include ''[[Sangokushi Taisen]], [[Virtua Fighter 5]]'' and ''[[Border Break]]''. Sega also continued to develop kids card games (''[[Oshare Majo: Love and Berry]]), ''prize games ([[UFO Catcher]]) and [[medal game|medal games]] ([[Starhorse|''Starhorse'']]). Sega Amusements was initially established to be a overseas distributor for Japanese titles. In recent times however they began developing local games themselves in order to appease to the small local arcade culture. Arcade culture in Japan has changed by catering for the hardcore fans who visit [[game centers]] more frequently.<ref>http://www.eurogamer.net/articles/2014-02-16-segas-arcade-redemption</ref> Sega's arcade business contributed more to Sega Sammy profits than Sega's consumer profits by a year to year basis until the year 2014.<ref>{{Cite web|title = Sales by segment�bFinancial Information�bInvestor Relations�bSEGA SAMMY HOLDINGS|url = http://www.segasammy.co.jp/english/ir/finance/sales.html|website = www.segasammy.co.jp|accessdate = 2015-04-05}}</ref> Due to the declining arcade business in Japan<ref>{{Cite web|title = CAPCOM {{!}} Market Data|url = http://www.capcom.co.jp/ir/english/business/market.html|website = www.capcom.co.jp|accessdate = 2015-04-05}}</ref>, development personell will be relocated to the consumer business, specifically the digital game area.<ref>{{Cite web|title = Business Strategies�bManagement Policy�bInvestor Relations�bSEGA SAMMY HOLDINGS|url = http://www.segasammy.co.jp/english/ir/management/strategy.html|website = www.segasammy.co.jp|accessdate = 2015-04-05}}</ref>
===2005–present===
{{cleanup|reason=Too detailed and inconsistent with prior paragraphs. History chronology unstructured and bewildered. Sega does not have a slot machine business. [[Sonic Boom: Rise of Lyric|Sonic Boom]] and [[Index Corporation|Index]] paragraphs were copypasted from their own articles|date=March 2014}}
By the end of 2005, Sega experienced strong earnings growth across multiple divisions. Contributing to the company's success were strong Arcade sales and sales of software titles ''[[Yakuza (video game)|Ryu ga Gotoku]]'' (known as ''[[Yakuza (series)|Yakuza]]'' outside of Asia).{{citation needed|date=January 2015}}


In 2012, Sega refurbished its [[Joypolis]] theme park in Tokyo, Japan. Sega provided the 3D imaging for [[Hatsune Miku]]'s [[Holographic|holographic concerts]]. In 2013, in co-operation with [[BBC Earth]], Sega opened the first interactive nature simulation museum, Orbi Yokohama.<ref>http://www.segasammy.co.jp/english/pr/corp/history/history_sega.html</ref> In the 2010s Sega established several operational firms for its mobile phone, theme park and arcade businesses, in order to streamline operations and avoid prior losses. In 2012, '''Sega Entertainment Co., Ltd.''' was established for Sega's theme park business. And beginning in 2015, '''Sega Interactive Co., Ltd.''' was established for the Arcade business.<ref>{{Cite web|url = http://www.segasammy.co.jp/english/pdf/release/20150212_organizational%20restructuring_e_final.pdf|title = |date = |accessdate = |website = |publisher = |last = |first = }}</ref> These new divisions will replace the former '''Sega Corporation''', and the new '''Sega Holdings Co., Ltd '''will contain all entertainment companies from the [[Sega Sammy Holdings|Sega Sammy]] group.
In an effort to appeal to western tastes{{citation needed|date=March 2014}}, they partnered with [[Obsidian Entertainment]] to develop a new [[Role-playing video game|RPG]] for the [[PlayStation 3]], [[Xbox 360]], and PC based on the [[Alien (franchise)|''Aliens'' franchise]], which was subsequently cancelled.<ref>{{cite web |url=http://www.gamesindustry.biz/articles/sega-signs-obsidian-for-next-generation-rpg |title=SEGA signs Obsidian for next-generation RPG|date=March 23, 2006|author=Tom, Bramwell}}</ref> The partnership was the latest in a series of collaborations with western video game studios, including [[Monolith Productions]] (''[[Condemned: Criminal Origins]]''), [[Bizarre Creations]] ([[The Club (video game)|''The Club'']]), and [[Silicon Knights]] (''The Ritualyst'', cancelled<ref>{{cite web|url=http://kotaku.com/5955223/what-went-wrong-with-silicon-knights-x+men-destiny|title=What Went Wrong With Silicon Knights’ X-Men: Destiny?|work=Kotaku.com|accessdate=2013-07-14}}</ref><ref>{{cite web|url=http://www.siliconera.com/2011/12/28/silicon-knights-made-kings-quest-prototype-never-finished-horror-game-the-ritualyst/|title=Silicon Knights Made King's Quest Prototype, Never Finished Horror Game The Ritualyst|work=siliconera.com|publisher=Siliconera|date=2011-12-28|accessdate=2013-07-14}}</ref>).

That desire to have a more Western appeal for Sega{{citation needed|date=March 2014}} was shortly followed up by Sega acquiring British developer Sports Interactive after a successful run of publishing ''Football Manager 2005'' and ''2006'', in which they managed to sell 1.5&nbsp;million copies,<ref>{{cite web |url=http://www.gamesindustry.biz/articles/sega-acquires-sports-interactive |title=SEGA acquires Sports Interactive|date=April 4, 2006|author=Tom, Bramwell}}</ref> the deal was said to be worth in the region of [[pound sterling|£]]30&nbsp;million ($52&nbsp;million) by Miles Jacobson, Sports Interactive's Managing Director.<ref>{{cite web |url=http://www.gamesindustry.biz/articles/sega-deal-is-worth-circa-gbp-30m-sports-interactive-boss|title=Sega deal is worth "circa GBP 30m" – Sports Interactive boss |publisher=Gamesindustry.biz |date=October 1, 2010 |accessdate=February 23, 2011}}</ref> This was, however, not the only developer Sega acquired, as they also purchased American developer Secret Level. Although the terms of the deal were not disclosed,<ref>{{cite web |url=http://www.gamesindustry.biz/articles/sega-establishes-new-internal-development-arm-in-us |title=SEGA establishes new internal development arm in US |publisher=Gamesindustry.biz|date=October 1, 2010|accessdate=February 23, 2011}}</ref> Secret Level had begun work before being bought by Sega to "recreate a classic Sega franchise" for the PS3 and Xbox 360 in July 2005, which was revealed to be ''[[Golden Axe: Beast Rider]]'' later that year.

While Sega continued its expansion in the West, on May 8, 2006, it was announced that Sega of Japan had begun helping famed Sega developer and [[Sonic Team]] head [[Yuji Naka]] (known for being the main programmer for the original ''[[Sonic the Hedgehog (series)|Sonic the Hedgehog]]'' games and ''[[Nights into Dreams...]]'') to start up his own company titled "[[Prope]]" (Latin for "beside" and "near future")<ref>{{cite web|url=http://prope.jp/|title=株式会社プロペ 公式サイト|publisher=Prope.jp|accessdate=February 23, 2011}}</ref> in which Sega helped provide 10% startup capital<ref>{{cite web|url=http://www.gamesindustry.biz/articles/sonic-creator-sets-up-new-studio-with-help-from-sega|title=Sonic creator sets up new studio with help from SEGA //|publisher=Gamesindustry.biz|date=October 1, 2010|accessdate=February 23, 2011}}</ref> and have the option to publish games produced from the studio if they wished to.

Due to the continued success of Sega's software sales, the company reported on May 17, 2006 a 31% rise in net profits from that of the previous year of the period ending March 31, 2006, being posted at ¥66.2&nbsp;billion ($577&nbsp;million), as well as an increase in operating profit growing by 13% from the previous year, being posted at ¥553.2&nbsp;billion ($4.82&nbsp;billion).<ref>{{cite web|url=http://www.segasammy.co.jp/english/pdf/release/tanshin_english_final.pdf |title=CONSOLIDATED FINANCIAL STATEMENTS -Year Ended March 31, 2006 |format=PDF |accessdate=2012-09-09}}</ref> Notable titles to have helped Sega increase profits in the West, such as ''[[Shadow the Hedgehog (video game)|Shadow the Hedgehog]]'' (which sold over a million copies)<ref>{{cite web|url=http://www.gamesindustry.biz/articles/sega-sammy-reports-31-per-cent-rise-in-profits|title=Sega Sammy reports 31 per cent rise in profits //|publisher=Gamesindustry.biz|date=May 17, 2006|accessdate=February 23, 2011}}</ref> and ''[[Sonic Riders]]'', while in Japan, games such as ''Yakuza'', ''Mushiking'', and ''Brain Trainer Portable'' continued to have strong sales.

Although Sega seemed poised to continue increasing profits, the company reported a massive drop of 93% profits for the period ending June 30, 2006 compared to the same period the previous year. Net income for the company dropped from $98.3&nbsp;million (a year earlier) to $7.12&nbsp;million for this period as well as total sales dropping from $926.5&nbsp;million to $809.1&nbsp;million,<ref>{{cite web|url=http://www.segasammy.co.jp/english/pdf/release/200703_1q_e.pdf |title=CONSOLIDATED FINANCIAL STATEMENTS -3 Months Ended June 30, 2006 |format=PDF |accessdate=2012-09-09}}</ref> Sega reported that the decrease in profits was due to no significant big releases by its slot machine division.

Despite this, Sega reported in November a massive 52% rise in profits for the periods between April and September 2006, compared to the same period last year.<ref>{{cite web|url=http://www.segasammy.co.jp/english/pdf/release/200609tanshin_englishver_1110.pdf |title=CONSOLIDATED FINANCIAL STATEMENTS -6 Months Ended September 30, 2006 |format=PDF |accessdate=2012-09-09}}</ref> Software sales for the company had also increased with 5.75&nbsp;million. Of those units, 1.76&nbsp;million were sold in Japan, 1.59&nbsp;million in Europe, 2.36&nbsp;million in the US, and 30,000 in other regions.<ref>{{cite web |url=http://www.gamesindustry.biz/articles/sega-sammy-bolstered-with-52-per-cent-profits-rise |title=Sega Sammy sees 52 per cent profits rise |publisher=Gamesindustry.biz |date=November 13, 2006|accessdate=February 23, 2011}}</ref> a number of titles were said to have performed well, in particular ''[[Super Monkey Ball Touch & Roll]]'' for the Nintendo DS and ''[[Football Manager 2006]]'' for the Xbox 360 having sold well. While Sega performed better in 2006, they had slashed their forecasts for the year ending March 2007 by 20% with an anticipated profit of $536.7&nbsp;million, down from the initial profits of $656.7&nbsp;million.

On August 26, 2007, IGN Australia announced that Sega would re-establish itself in Australia, ending THQ Asia Pacific's distribution of Sega products in Australia. Sega Australia has a very close relationship with [[Nintendo Australia]], despite [[Sega Ozisoft]] and NAL previously being rivals in the Australian gaming market. Sega Australia currently do not distribute in New Zealand, instead like most other Australian publishers, they opt to let retailers take care of the distribution e.g. [[EB Games Australia]] and [[Kmart]].

Continuing to prepare more games for the Western market, Sega was able to bridge a partnership with New Line Cinema in September to develop a game for the movie tie-in game ''[[The Golden Compass]]''<ref>{{cite web|url=http://www.sega-europe.com/en/NewsStory/1293.htm|title=SEGA|date=November 9, 2006|accessdate=February 23, 2011|archiveurl=http://web.archive.org/web/20061109161314/http://www.sega-europe.com/en/NewsStory/1293.htm|archivedate=November 9, 2006}}</ref> and also partnered themselves with Fox to develop two new games based on the ''[[Alien (franchise)|Alien]]'' franchise.<ref>{{cite web |url=http://wayback.archive.org/web/20080329143127/http://aliens.sega-europe.com/en/index.html |title=ALIENS |publisher=Aliens.sega-europe.com |accessdate=February 23, 2011}}</ref> Sega then assigned critically acclaimed developers [[Gearbox Software]] to develop a first person shooter (''[[Aliens: Colonial Marines]]'') and [[Obsidian Entertainment]] to develop an RPG based on the popular film franchise for the [[PlayStation 3]], Xbox 360, and PC. The latter was cancelled for undisclosed reasons by Sega. In February 2013, ''Aliens: Colonial Marines'' was released on Xbox 360, PS3, and PC. Sega has also been publishing games from independent studios (such as [[Platinum Games]]), and is currently considering turning them into franchises.

Sega has also designed an online flash game site dubbed "PlaySEGA", which includes both original games and ports of classic games, with retro Sonic games being promised in the long run.<ref>{{cite web|author=Sega Europe – Online Services|url=http://wayback.archive.org/web/20130116131817/http://www.playsega.com/|title=PlaySEGA|publisher=PlaySEGA|accessdate=February 23, 2011}}</ref> Users of this site earn various amounts of "PlaySEGA Rings", which they can use to customize and house their avatar or enter weekly cash drawings.

In September 2009, evidence was uncovered<ref>{{cite web|author=bbonline Newbie|url=http://www.casinolistings.com/news/2009/09/sega-online-casino-and-poker-rumours-confirmed|title=Sega online casino and poker rumours confirmed|publisher=Casinolistings.com|date=September 21, 2009|accessdate=February 23, 2011}}</ref> that suggests Sega is expanding into the online gambling sector with the launch of an online [[SEGACasino|casino]] and [[SEGAPoker|poker]] room in October 2009.

Sega would also go on to release several blockbuster Sonic games for the [[Wii]], [[Xbox 360]], and [[PlayStation 3]]. Some of these are ''[[Sonic Unleashed]]'' (2008), ''[[Sonic and the Black Knight]]'' (2009), and ''[[Sonic Colors]]'' (2010). All of these games sold well in North America and Europe, but they did not sell well in Japan.

In 2010, Sega published a sequel to the original Sonic series with ''[[Sonic the Hedgehog 4: Episode I]]''.

On January 22, 2013, Sega acquired the Vancouver-based developer [[Relic Entertainment]] from [[THQ]] (who had recently filed for bankruptcy).<ref name=ign-thqsales>{{cite web|url=http://www.ign.com/articles/2013/01/23/thq-dissolved-saints-row-company-of-heroes-darksiders-devs-acquired|title=THQ Dissolved, Saints Row, Company of Heroes Devs Acquired|last=Goldfarb|first=Andrew|publisher=IGN|date=2013-01-23|accessdate=2013-01-23}}</ref>

On May 17, 2013, Sega announced a worldwide partnership with Nintendo for the ''[[Sonic the Hedgehog (series)|Sonic the Hedgehog]]'' franchise and announced that the next three Sonic games (''[[Sonic Lost World]]'', ''[[Mario & Sonic at the Sochi 2014 Olympic Winter Games]]'' and ''[[Sonic Boom (2014 video game)|Sonic Boom]]'') will be exclusive to Nintendo devices.<ref>{{cite web|url=http://online.wsj.com/article/PR-CO-20130517-909120.html|title=SEGA and Nintendo Enter Exclusive Partnership for Sonic the Hedgehog|publisher=The Wall Street Trade Journal|date= May 17, 2013}}</ref> The same day, Sega Europe announced that the publishing and distribution rights for the next three Sonic games in Europe and Australia will be handed to [[Nintendo]].<ref>{{cite web|url=http://www.gamesindustry.biz/articles/2013-05-17-sega-europe-hands-sonic-publishing-duties-to-nintendo|title=Sega Europe hands Sonic publishing duties to Nintendo|publisher=GamesIndustry International|date= May 17, 2013}}</ref> However, Sega published ''Sonic Lost World'' in [[North America]] and [[Japan]].

From 2010 to 2013, [[Atlus]] was a brand of [[Index Corporation]]. In June 2013, it was reported that Index filed for civil rehabilitation proceedings as they were facing bankruptcy due to a debt of ¥24.5 billion. When asked, an Atlus representative made a statement claiming both Index Digital Media, Inc. and the ATLUS brand were unaffected by these proceedings.<ref name=polygon>{{cite news|title=Atlus at risk after parent company announces bankruptcy (update) Index|author=Emily Gera |url=http://www.polygon.com/2013/6/27/4469788/atlus-at-risk-after-parent-company-announces-bankruptcy|publisher=Vox Media|date=27 June 2013|accessdate=27 June 2013}}</ref> On September 18, 2013, it was reported that [[Sega Sammy Holdings]] had won a bid to acquire the bankrupt Index for 14 billion yen.<ref name=bloomberg-atlussega>{{cite news|title=Sega Said to Win Auction to Buy Bankrupt Japan Gamemaker Index|author=Shigeru Sato & Takahiko Hyuga|url=http://www.bloomberg.com/news/2013-09-18/sega-said-to-win-auction-to-buy-bankrupt-japan-gamemaker-index.html|publisher=Bloomberg|date=18 September 2013|accessdate=18 September 2013}}</ref> All operations of Index Corp., including the Atlus brand and Index Digital Media Inc. (Atlus USA), transferred to Sega Dream Corporation, a newly established, wholly owned subsidiary of Sega Corporation, on November 1, 2013.<ref>{{cite web|url=http://www.segasammy.co.jp/english/pdf/release/20130918_index_e_final.pdf|title=Notice of Conclusion regarding Business Transfer Agreement of Index Corporation|publisher=Sega Sammy Holdings Inc.|date=18 September 2013|accessdate=18 September 2013|archiveurl= |deadurl=no |archivedate= |format=PDF}}</ref>

On 1 November 2013, Sega announced that it will rename its subsidiary, Sega Dream Corporation, to Index Corporation.<ref>{{cite web|url=http://sega.jp/corp/release/2013/1101/|script-title=ja:当社子会社の事業譲受に関するお知らせ|language=Japanese|publisher=Sega Corporation|date=1 November 2013|accessdate=2 November 2013|archiveurl= |deadurl=no |archivedate=}}</ref>

On February 18, 2014, Sega announced the separation of Index Corporation's contents and solution businesses into a new subsidiary under the name 'Index Corporation' (株式会社インデックス), while renaming the 'old' Index Corporation and its remaining digital game business division into 'Atlus' (株式会社アトラス), effective on April 1, 2014. The new Atlus would also include the foreign subsidiary Index Digital Media, Inc., which would be renamed to Atlus U.S.A., Inc. at the same day as the establishment of new Atlus.<ref name="sega.co.jp">{{cite web|url=http://sega.co.jp/wp-content/uploads/2014/03/nr140218_1.pdf|title=連結子会社の分割(新設分割)及び商号変更に関するお知らせ|work=sega.co.jp|format=PDF}}</ref>

On February 6, 2014, Sega announced ''Sonic Boom'' as the official title for [[Wii U]] and [[Nintendo 3DS]]. The game ties in with Sega's upcoming ''Sonic Boom'' franchise, which includes [[Sonic Boom (TV series)|a television series]] and other merchandise, and will be the third release in Sega's exclusivity agreement with Nintendo.<ref name="Polygon: new look">{{cite web |url=http://www.polygon.com/2014/2/6/5386746/sonic-boom-wii-u-nintendo-3ds-sega |accessdate=February 6, 2014 |title=Sonic Boom gives Sega's series a new look, two new developers |last1=Lien |first1=Tracey |date=February 6, 2014 |work=[[Polygon (website)|Polygon]] |publisher=[[Vox Media]] |archiveurl=http://www.webcitation.org/6NCPACGlr |archivedate=February 6, 2014 |deadurl=no }}</ref> The franchise is designed for Western audiences<ref name="Polygon: handed a scarf">{{cite web |url=http://www.polygon.com/2014/2/6/5387184/why-sega-handed-sonic-over-to-western-studios-and-gave-him-a-scarf |accessdate=February 6, 2014 |title=Why Sega handed Sonic over to Western studios and gave him a scarf |last1=Corriea |first1=Alexa Ray |date=February 6, 2014 |work=[[Polygon (website)|Polygon]] |publisher=[[Vox Media]] |archiveurl=http://www.webcitation.org/6NCQPVAsG |archivedate=February 6, 2014 |deadurl=no }}</ref> and will serve as a prequel to the television series. Sega announced the game to feature Sonic's traditional speed alongside a new exploratory [[game mechanic]] called "Enerbeam". Sega of America's marketing director Marchello Churchill explained that the new franchise was not designed to "replace modern Sonic".<ref name="Polygon: new look"/> The Western developer's CEO explained that ''Sonic Boom''{{'s}} Sonic is "very different ... both in tone and art direction."


==Company personnel==
==Company personnel==
[[File:Sega Office2.jpg|thumb|Sega headquarters Building 1, [[Ōta, Tokyo|Ōta]], Tokyo]]


===Corporate executives===
===Corporate executives===


====Japanese====
====Japanese====
* [[Hideki Okamura]]: President of Sega Japan (2013–present)
* [[Okitane Usui]]: President of Sega Japan (2008–2012) (Hired by Groupon as International Vice President, East Asia)
* [[Okitane Usui]]: President of Sega Japan (2008–2012) (Hired by Groupon as International Vice President, East Asia)
*[[Hayao Nakayama]]: Cofounder, president SOJ (1984–1998)
* [[Hisao Oguchi]]: President SOJ (2003–2004)
* Hideki Sato: President SOJ (2001-2003) (joined in 1971, responsible for Sega's consumer hardware, [[SG-1000]], [[Sega Master System]], [[Sega Mega Drive]], [[Sega Saturn]] and [[Sega Dreamcast]])<ref>{{Cite web|title = Sega-16 – Sega Stars: Hideki Sato|url = http://www.sega-16.com/2006/10/sega-stars-hideki-sato/|website = www.sega-16.com|accessdate = 2015-04-08}}</ref>
*[[Isao Okawa]]: President SOJ (2000–2001) (died shortly after Dreamcast was discontinued in North America, forgave the debts Sega owed him, and gave the company his $695&nbsp;million worth of Sega and CSK stock to Sega Corporation.)<ref name="Okawadebt">{{cite book|last=Kent|first=Steven|authorlink=Steven L. Kent|title=The Ultimate History of Video Games: From Pong to Pokémon and Beyond- The Story That Touched Our Lives and Changed the World|year=2001|edition=First|publisher=Prima Publishing|location=Roseville, California|isbn=0-7615-3643-4|page=589|chapter=Three Horses and a Pony|quote=In his last days, Okawa forgave Sega's debts to him and returned all of his shares of Sega and CSK stock as a gift-in Sega's case, a $695&nbsp;million gift that would help the company survive the transition of becoming a multiplatform software manufacturer.}}</ref>
*[[Shoichiro Irimajiri]]: President SOJ (1998–2000)
*[[Shoichiro Irimajiri]]: President SOJ (1998–2000)
*[[Hayao Nakayama]]: Cofounder, president SOJ (1984–1998)
*[[Isao Okawa]]: President SOJ (2000–2001) (died shortly after Dreamcast was discontinued in North America, forgave the debts Sega owed him, and gave the company his $695&nbsp;million worth of Sega and CSK stock to Sega Corporation.)<ref name=Okawadebt>{{cite book|last=Kent|first=Steven|authorlink=Steven L. Kent|title=The Ultimate History of Video Games: From Pong to Pokémon and Beyond- The Story That Touched Our Lives and Changed the World|year=2001|edition=First|publisher=Prima Publishing|location=Roseville, California|isbn=0-7615-3643-4|page=589|chapter=Three Horses and a Pony|quote=In his last days, Okawa forgave Sega's debts to him and returned all of his shares of Sega and CSK stock as a gift-in Sega's case, a $695&nbsp;million gift that would help the company survive the transition of becoming a multiplatform software manufacturer.}}</ref>
*Hisao Oguchi: President SOJ (2001–2004)


====North American====
====North American====
*John Chengwa: President of Sega of America (2012–present)
*John Cheng: President of Sega of America (2012–present)
*[[Mike Hayes]]: President of Sega of America (2009–2012)
*[[Mike Hayes]]: President of Sega of America (2009–2012)
*Naoya Tsurumi: CEO of Sega of America (2005-2009)<ref name="gamesindustry.biz">{{cite web|url=http://www.gamesindustry.biz/articles/sega-integrates-sega-of-america-and-sega-europe-management-teams-to-drive-growth-in-western-markets|title=SEGA Integrates SEGA of America and SEGA Europe Management Teams To Drive Growth In Western Markets|accessdate=May 20, 2014}}</ref><ref name="joystiq.com">{{cite web|url=http://www.joystiq.com/2009/06/18/segas-naoya-tsurumi-promoted-to-lofty-new-position/|title=Sega's Naoya Tsurumi promoted to lofty new position|accessdate=May 20, 2014}}</ref>
*[[Simon Jeffery]]: President Sega of America (2003–2009)
*[[Simon Jeffery]]: President Sega of America (2003–2009)
*[[Peter Moore (business)|Peter Moore]]: President Sega of America(1999–2003)
*[[Peter Moore (business)|Peter Moore]]: President Sega of America(1999–2003)
Line 176: Line 138:
*Michael Katz: President Sega of America(1989–1991)
*Michael Katz: President Sega of America(1989–1991)
*Bruce Lowry: President Sega of America(1986–1988)<ref>{{cite web|url=http://www.linkedin.com/pub/bruce-lowry/9/391/bb7 |title=Bruce Lowry |publisher=LinkedIn |accessdate=February 23, 2011}}</ref>
*Bruce Lowry: President Sega of America(1986–1988)<ref>{{cite web|url=http://www.linkedin.com/pub/bruce-lowry/9/391/bb7 |title=Bruce Lowry |publisher=LinkedIn |accessdate=February 23, 2011}}</ref>
*Naoya Tsurumi: CEO of Sega of America (2005-2009)<ref name="gamesindustry.biz">{{cite web|url=http://www.gamesindustry.biz/articles/sega-integrates-sega-of-america-and-sega-europe-management-teams-to-drive-growth-in-western-markets|title=SEGA Integrates SEGA of America and SEGA Europe Management Teams To Drive Growth In Western Markets|accessdate=May 20, 2014}}</ref><ref name="joystiq.com">{{cite web|url=http://www.joystiq.com/2009/06/18/segas-naoya-tsurumi-promoted-to-lofty-new-position/|title=Sega's Naoya Tsurumi promoted to lofty new position|accessdate=May 20, 2014}}</ref>
*[[David Rosen (business)|David Rosen]]: Cofounder, board member
*[[David Rosen (business)|David Rosen]]: Cofounder, board member


Line 192: Line 153:
*Akira Nomoto: President SPK (2013–present)
*Akira Nomoto: President SPK (2013–present)


== Seal of Quality ==
===Research & Development===
The '''Sega Seal of Quality''' was an icon placed on the packaging of all video games that had Sega's official approval to be played on a Sega console system. As was the case with the [[Nintendo_Seal_of_Quality]], the intention behind the "seal" was to avoid the mistakes that led to the [[Video_Game_Crash_of_1983]] by ensuring that games were compatible with the intended Sega console system, and to censor content that Sega felt was inappropriate for their image.<p>The Sega Seal of Quality was an icon that Sega put on its own video games along with certain video games published by a third party software developer. As was the case with the [[Nintendo_Seal_of_Quality]], the Sega seal appeared on a video game's box and marketing as a means of informing the consumer that Sega had previewed the game before its release to ensure that the game was fully compatible for its intended home console system, and had met a certain level of Sega's standard of quality (in terms of graphics, sound, challenge, and possible offensive content). However, the Sega Seal of Quality was otherwise very different than the Nintendo Seal of Quality.</p>Sega never required a third-party software developer to earn the official Sega Seal of Quality as a precondition for publication, although most developers chose to do so. Furthermore, a game could earn the seal even if it contained certain themes that its bigger competitor, Nintendo, would have prohibited: blood, scantily clad female villains, and graphic violence. Hence, the Sega Seal of Quality was given out to [[Sega_Genesis]] games that depicted blood (''[[Splatterhouse_2]]'', ''[[Techno_Cop]]''), and scantily clad females (<i>[[Streets_of_Rage]]</i>, ''[[Final_Fight_CD]]'').

====Hardware Division====
*Hideki Sato: Head of Sega Away Team (1985–2001) (also called Sega Hardware Team R&D)

====Video Game Software Division====
{{unreferenced section|date=January 2015}}
*[[Noriyoshi Ohba]]: Creator of company-defining [[Shinobi (video game)|Shinobi]] and [[Streets of Rage]] series, as well as one of the strongest earners of the company [[Sangokushi Taisen]]. Currently CEO of Premium Agency.
*[[Makoto Uchida]]: Creator of [[Golden Axe]] and [[Altered Beast]]. Currently head of [[Sega China]].
*[[Rieko Kodama]]: One of the most defining contributors to Sega's early games such as [[Alex Kidd]], [[Quartet]], [[Altered Beast]], [[Phantasy Star]] and [[Sonic the Hedgehog (1991 video game)|Sonic the Hedgehog]].
*[[Mie Kumagai]]: Head of AM3, which was previously headed by [[Hisao Oguchi]] who created company-defining Arcade hits such as [[Crazy Taxi]], [[Virtual-On]], [[Derby Owners Club]] and [[Virtua Tennis]].
*[[Toshihiro Nagoshi]]: Creator of perhaps the biggest Arcade racing hit, [[Daytona USA (video game)|Daytona USA]]. Also creator of the initially in the million selling [[Super Monkey Ball (video game)|Super Monkey Ball]] and [[Yakuza]]. Currently CCO of the company.
*[[Yuji Naka]]: Co-creator of company mascot, currently owner of independent development studio [[Prope]].
*[[Yu Suzuki]]: Creator of genre-inventing and company-defining games such as [[Out Run]], [[Space Harrier]], [[After Burner]], [[Hang-On]], [[Virtua Racing]], [[Virtua Cop]], [[Virtua Fighter (series)|Virtua Fighter]] and [[Shenmue]]. Currently owner of [[Yu Suzuki|YS.NET]]

==Seal of Quality==
{{unreferenced section|date=June 2013}}

The '''Sega Seal of Quality''' was an icon placed on the packaging of all video games that had Sega's official approval to be played on a Sega console system. As was the case with the [[Nintendo Seal of Quality]], the intention behind the "seal" was to avoid the mistakes that led to the [[Video Game Crash of 1983]] by ensuring that games were compatible with the intended Sega console system, and to censor content that Sega felt was inappropriate for their image.

The Sega Seal of Quality was an icon that Sega put on its own video games along with certain video games published by a third party software developer. As was the case with the [[Nintendo Seal of Quality]], the Sega seal appeared on a video game's box and marketing as a means of informing the consumer that Sega had previewed the game before its release to ensure that the game was fully compatible for its intended home console system, and had met a certain level of Sega's standard of quality (in terms of graphics, sound, challenge, and possible offensive content). However, the Sega Seal of Quality was otherwise very different than the Nintendo Seal of Quality.

Sega never required a third-party software developer to earn the official Sega Seal of Quality as a precondition for publication, although most developers chose to do so. Furthermore, a game could earn the seal even if it contained certain themes that its bigger competitor, Nintendo, would have prohibited: blood, scantily clad female villains, and graphic violence. Hence, the Sega Seal of Quality was given out to [[Sega Genesis]] games that depicted blood (''[[Splatterhouse 2]]'', ''[[Techno Cop]]''), and scantily clad females (''[[Streets of Rage]]'', ''[[Final Fight CD]]'').

Video games released on a Sega home console system were still censored for other taboo or controversial depictions; i.e. [[profanity]], [[nudity]], prostitution, homosexuality. However, this was done by the software developer and not as a requirement issued by Sega to the developer.

In 1993, Sega of America permitted [[Acclaim Entertainment|Acclaim]] to keep the graphic violence and gore in its port of [[Midway Games|Midway]]'s popular [[arcade game]] titled ''[[Mortal Kombat (1992 video game)|Mortal Kombat]]''. As this game and other games sparked a national controversy over the violent content in video games, Sega created the [[Videogame Rating Council]] to give a descriptive rating to every game sold on a Sega home console system in the United States. This rating, along with the seal, would appear on the game's box and marketing. The Videogame Rating Council was phased out in 1994 with the adoption of the industry wide [[Entertainment Software Rating Board]].

Sega gradually shifted the scope of their ''seal of quality'' to focus less on content and more on assuring consumers that a game was fully compatible with its intended home console system. The Sega Seal is no longer seen on any games as Sega stopped producing games consoles, home or handheld, after the discontinuation of the [[Dreamcast]] in March 2001.

==Advertisement campaigns==
{{unreferenced section|date=June 2013}}
{{cleanup|reason=Improve reagions/countries. E.g. "Genesis does what Nintendon't" was only used in USA or North America.|date=March 2014}}
Sega has had a long history of different slogans and ad campaigns; such as
"Genesis does what Nintendon't".

===Arcade===
*The Quartermasters. (1970s)
*The Arcade Experts. (early '80s)

===Master System===
*The challenge will always be there.
*Major fun and games!
*Now, there are no limits.
*Hot hits today! Hot hits on the way!
*Do me a favor, plug me into a Sega (talking TV).
*All kinds of games, all kinds of fun. (Australia)
*Let the games begin! (Australia)
*Play strong, Play Sega (Denmark)

===Mega Drive/Genesis===

*Genesis does what Nintendon't! (early 90s, pre-[[SNES]])
*You can't do this on Nintendo (early 90s, pre-[[SNES]])
*Blast Processing
*The name "''Sega!''" being composed by a choir.
*Welcome To The Next Level. (Also used for the Game Gear. Referenced in [[Shadow The Hedgehog (video game)|Shadow The Hedgehog]])
*To be this good takes AGES, To be this good takes SEGA. (UK) ("Ages" is "Sega" spelled backwards) - this was parodied by [[Commodore International|Commodore]] with "To be this good will take Sega ages".<ref>[http://www.amigahistory.co.uk/adverts/adverts.html Amiga Advertising]</ref>
*Siga Sega! ("Follow Sega!", used in Brazil during the early '90s)
*Sega, c'est plus fort que toi ! ('Sega, it's stronger than you!', cult French TV slogan, early '90s)
*16 bit arcade graphics!
*Cyber Razor Cut
*La Ley del Más Fuerte (The Law of the Strongest, Spanish slogan from 1993 to 1994)
*Pirate TV (Britain, also featured as a comic series in ''[[Sonic the Comic]]'')
*Canal Pirata Sega (Spain)
*Sega, é mais forte que tu (Sega, It's stronger than you, Portugal, early '90s)
*Someone yelling "''SEGA!''" (the "Sega scream").

===Saturn===
*A little bit too real (early print ad in the US)
*Welcome to the Real World – Sega Saturn. (Early UK TV slogan)
*[[Segata Sanshiro]]: "Sega Saturn Shiro!" ("Play Sega Saturn!")
*When you have Sega Saturn, nothing else matters.
*The Game is Never Over (also used in last European Mega Drive commercials.)
*Peligrosamente real (Dangerously Real. 1st Spanish slogan)
*Contraprográmate (De-Program-Yourself, Spain, 1997)
*The Plaything ad.
*The Theater of the eye (mid-'90s US ad.)
*Nous ne sommes pas sur la même planète ("We are not on the same planet", French slogan in the mid-'90s)
*Perigosamente Real (Dangerously Real, Portugal.)

===Dreamcast===
*It's Thinking. (tagline used in US launch)
*Up to 6&nbsp;billion players. (tagline used in Europe launch)
*You are now entering chapter three (Australian launch)


Video games released on a Sega home console system were still censored for other taboo or controversial depictions; i.e. [[Profanity]], [[Nudity]], prostitution, homosexuality. However, this was done by the software developer and not as a requirement issued by Sega to the developer.
===Post-Dreamcast years (2002–2003)===
*The return of the "Sega!" choir.


In 1993, Sega of America permitted [[Acclaim Entertainment|Acclaim]] to keep the graphic violence and gore in its port of [[Midway Games|Midway]]'s popular [[Arcade_game]] titled <i>[[Mortal Kombat (1992 video game)|Mortal Kombat]]</i>. As this game and other games sparked a national controversy over the violent content in video games, Sega created the [[Videogame_Rating_Council]] to give a descriptive rating to every game sold on a Sega home console system in the United States. This rating, along with the seal, would appear on the game's box and marketing. The Videogame Rating Council was phased out in 1994 with the adoption of the industry wide [[Entertainment_Software_Rating_Board]].<p>Sega gradually shifted the scope of their ''seal of quality'' to focus less on content and more on assuring consumers that a game was fully compatible with its intended home console system. The Sega Seal is no longer seen on any games as Sega stopped producing games consoles, home or handheld, after the discontinuation of the [[Dreamcast]] in March 2001.<ref>{{Cite web|url = https://books.google.co.uk/books?id=7AsEAAAAMBAJ&pg=PA58&lpg=PA58&dq=Sega+Seal+of+Quality&source=bl&ots=Yuk9qKA6-t&sig=b1cOZfc0N8fx6K-dlg259gdC3UU&hl=en&sa=X&ei=PUQmVfK2Kc7-aKPAgbgF&ved=0CEkQ6AEwCTgK#v=onepage&q=Sega%20Seal%20of%20Quality&f=false|title = |date = |accessdate = |website = |publisher = |last = |first = }}</ref></p>
==See also==
==See also==
{{Portal|Sega|Companies}}
{{Portal|Sega|Companies}}
Line 308: Line 186:
{{Nintendo developers}}
{{Nintendo developers}}
{{Japanese Electronics Industry}}
{{Japanese Electronics Industry}}
{{Major video game publishers in Metacritic}}
{{Vocaloid}}


[[Category:Sega| ]]
[[Category:Sega| ]]

Revision as of 14:48, 9 April 2015

Sega
Native name
[セガ] Error: {{Lang}}: unrecognized language code: jp (help)
Company typeSubsidiary
IndustryVideo games
Arcade games
Third party publisher
Amusement
Interactive entertainment
Entertainment
FoundedHonolulu, Hawaii, U.S. (1940 (1940), as Service Games)
FounderMartin Bromely
Irving Bromberg
James Humpert
David Rosen
Headquarters,
Japan
Number of locations
International Offices:
San Francisco, California, U.S.
Brentford, Greater London, United Kingdom
Seoul, South Korea
Vancouver, Canada
Moscow, Russia
Area served
Worldwide
Key people
Hajime Satomi
(CEO, Sega Sammy Holdings)
Haruki Satomi
(CEO, Sega Sammy Holdings)
Hideki Okamura
(President and COO)
Toshihiro Nagoshi
(CCO)
Hiroshi Kataoka
(Creative Officer)
Jürgen Post
(CEO, Sega Europe)
John Cheng
(CEO, Sega of America)
ProductsGames
Sonic the Hedgehog series
Phantasy Star series
Shining series
Puyo Puyo series
Virtua Fighter series
The House of the Dead series
Sakura Wars series
Valkyria Chronicles series
Super Monkey Ball series
Yakuza series
Hatsune Miku: Project DIVA series
Shinobi series
Game consoles (1983-present)
SG-1000
Master System
Mega Drive/Genesis
Game Gear
Mega-CD
Sega 32X
Saturn
Dreamcast
OwnerIndependent
(1940 (1940)–1969 (1969))
Gulf+Western (Viacom)
(1969 (1969)–1984 (1984))
Bally Manufacturing
(1984)
CSK Holdings Corporation
(1984 (1984)–2004 (2004))
Sega Sammy Holdings (2004 (2004)–present)
Number of employees
2,226 (FY 2014) [1]
ParentSega Sammy Holdings
SubsidiariesAtlus
The Creative Assembly
Demiurge Studios
Index Corporation
Relic Entertainment
Sports Interactive
Three Rings Design
Marza Animation Planet
TMS Entertainment
WebsiteSega of Japan
Sega of America
Sega Europe

Sega (セガ, Sega) (short for Service Games), and usually styled as SEGA, is a Japanese multinational video game developer, publisher, and hardware development company headquartered in Tokyo, Japan, with multiple offices around the world. Sega developed and manufactured numerous home video game consoles from 1983 to 2001, but the financial losses incurred from their Dreamcast console caused the company to restructure itself in 2001, and focus on providing software as a third-party developer, exiting console manufacturing completely.[2] However, arcade development would continue unaffected. Sega is the world's most prolific arcade producer with 530 games as 73 franchises on 23 different arcade system boards since 1981, as of 2010[3]

Sega, along with their many software studios, are known for multi-million-selling game franchises including Sonic the Hedgehog, Virtua Fighter, Phantasy Star, Yakuza, and Total War. Sega's head offices are located in Ōta, Tokyo, Japan. Sega's European division, Sega Europe Ltd., is headquartered in the Brentford area of London in the United Kingdom. Sega's North American division, Sega of America Inc., is headquartered in San Francisco, having moved there from Redwood City, California in 1999.[4][5] In 2015, the division will relocate to Southern California.[6] Sega Publishing Korea is headquartered in Jongno, Seoul, Korea. Sega's Australian & European operations outside of the United Kingdom closed on July 1, 2012 due to world economic pressures. Distribution of Sega products in Australia as of July 2012 is handled by Five Star Games, made up of all the redundant employees from Sega Australia.[7]

History

Company origins (1940–1982)

SEGA Diamond 3 Star

Sega's roots can be traced back to a company based in Honolulu, Hawaii named Service Games, which began operations in 1940. In 1951, Raymond Lemaire and Richard Stewart moved the company to Tokyo, Japan to develop and distribute coin-operated jukeboxes, games, and slot machines. Within a few years Service Games began importing these machines to American military bases throughout Japan.

In 1954, David Rosen, an American officer in the Air Force, launched a two-minute photo booth business in Tokyo. This company eventually became Rosen Enterprises, and in 1957 began importing coin-operated games to Japan. By 1965, Rosen Enterprises grew to a chain of over 200 arcades, with Service Games its only competitor. Rosen then orchestrated a merger between Rosen Enterprises and Service Games, who by then had their own factory facilities, becoming chief executive of the new company, Sega Enterprises, which derived its name from the first two letters of SErvice GAmes.[8]

Within a year, Sega began the transition from importer to manufacturer, with the release of the Rosen designed submarine simulator game Periscope. The game at that time sported innovative light and sound effects, eventually becoming quite successful in Japan. It was soon exported to both Europe and the United States, becoming the first arcade game in America to cost 25¢ per play.[8]

In 1969, Rosen sold Sega to Gulf+Western which also owned Paramount Pictures which later became Paramount Communications Inc. (whose media properties had since been absorbed by Viacom), remaining on however as CEO of the Sega division. Under Rosen's leadership, Sega continued to grow and prosper, and in 1972 G&W made Sega Enterprises a subsidiary, and took the company public. Sega's current logo dates back to 1976. Sega prospered heavily from the arcade gaming boom of the late 1970s, with revenues climbing to over $100 million by 1979.[8]

Entry into the home console market (1982–1989)

In 1982, Sega's revenues would surpass $214 million, and they introduced the industry's first three-dimensional game, SubRoc 3D. The following year, an overabundance of arcade games led to the video game crash, causing Sega's revenues to drop to $136 million. Sega then pioneered the use of laser disks in the video game Astronbelt, and designed and released its first home video game console, the SG-1000 for the second generation of home consoles. Despite this, G&W sold the U.S. assets of Sega Enterprises that same year to pinball manufacturer Bally Manufacturing, and in January 1984 Rosen resigned his post with the company.

SG-1000

The Japanese assets of Sega were purchased for $38 million by a group of investors led by Rosen, Robert Deith, and Hayao Nakayama, a Japanese businessman who owned Esco Boueki (Esco Trading) an arcade game distribution company[9] that had been acquired by Rosen in 1979. Nakayama became the new CEO of Sega, Robert Deith Chairman of the Board, and Rosen became head of its subsidiary in the United States.

In 1984, the multibillion dollar Japanese conglomerate CSK bought Sega, renamed it to Sega Enterprises Ltd., headquartered it in Japan, and two years later, shares of its stock were being traded on the Tokyo Stock Exchange. David Rosen's friend, Isao Okawa, the chairman of CSK, became chairman of Sega.

Sega Master System

In 1986, Sega of America was poised to take advantage of the resurgent video game market in the United States.

Sega would also release the Sega Master System and the first Alex Kidd game, who would be Sega's unofficial mascot until 1991, when Sonic the Hedgehog took over. While the Master System was technically superior to the NES,[10] it failed to capture market share in North America and Japan due to highly aggressive strategies by Nintendo and ineffective marketing by Tonka (which marketed the console on behalf of SEGA in the United States). However, the Master System was highly successful in Europe, Australia, New Zealand, and Brazil with games still being sold well into the 1990s alongside the Mega Drive and Nintendo's NES and SNES.

Amusement business (1982–1989)

Sega released the first "full body experience" titles[11](Hang-On and After Burner) that make use of hydraulic cabinet functionality and force feedback control. Sega also released the 360 degree rotating machine R-360. For arcade system boards, Sega released the System series and the Super Scaler series. UFO Catcher was introduced in 1985 and is Japan's most commonly installed claw crane game.[12] Sega was also one of the first to introduce medal games with World Bingo and World Derby in the 1980's, a sub-industry within Japanese arcades up to it's current day.

Expansion (1989–2001)

Sega Genesis

Sega Genesis, second North American version.
Sonic the Hedgehog has been Sega's mascot since the character's introduction in 1991.

With the introduction of the Sega Genesis in America, Sega of America launched an anti-Nintendo campaign to carry the momentum to the new generation of games, with its slogan "Genesis does what Nintendon't." This was initially implemented by Sega of America President Michael Katz.[13] When Nintendo launched its Super Nintendo Entertainment System in 1991, Sega changed its slogan to "Welcome to the next level."

The same year, Sega of America's leadership passed from Michael Katz to Tom Kalinske, who further escalated the "console war" that was developing.[14] As a preemptive strike against the release of the SNES, Sega re-branded itself with a new game and mascot, Sonic the Hedgehog. This shift led to a wider success for the Genesis and would eventually propel Sega to 65% of the market in North America for a brief time. Simultaneously, after much previous delay, Sega released the moderately successful Mega-CD as an add-on feature, allowing for extra storage in games due to their CD-ROM format, giving developers the ability to make longer, more sophisticated games, the most popular of which was Sega's own Sonic CD.[15] Sonic the Hedgehog 2 was also released at this time, and became the most successful game Sega ever made,[16] selling six million copies as of June 2006.[16]

In 1994, Sega released the Sega 32X in an attempt to upgrade the Mega Drive to the standards of more advanced systems. It sold well initially, but had problems with lack of software and hype about the upcoming Sega Saturn and Sony's PlayStation.[17] Within a year, it was in the bargain bins of many stores.[18] Also in 1994, Sega launched the Sega Channel, a subscription gaming service delivered by local cable companies affiliated with Time-Warner Cable or TCI, through which subscribers received a special cartridge adapter that connected to the cable connection. At its peak, the Sega Channel had approximately 250,000 subscribers.[19]

Sega versus Accolade

In 1992, Sega lost the Sega v. Accolade case, which involved independently produced software for the Sega Mega Drive/Genesis console. Accolade had copied a small amount of Sega's code to achieve compatibility with the Sega Genesis platform. The verdict set a precedent that copyrights do not extend to non-expressive content in software for which a system is required to run the software.[15] The case in question stems from the nature of the console video game market. Hardware companies often sell their systems at or below cost, and rely on other revenue streams such as in this case, game licensing. Sega was attempting to "lock out" game companies from making Mega Drive games unless they paid Sega a fee (something its competition has done in the past). Their strategy was to make the hardware reject any cartridge that did not include a Sega trademark. If an unlicensed company included this trademark in their game, Sega could sue the company for trademark infringement. Though Sega lost this lawsuit, all later Sega systems seemed to incorporate similar hardware requirements.

A "Round Button" Sega Saturn

Saturn

On May 11, 1995, Sega released the Sega Saturn (with Virtua Fighter) in the American market. Sega's first CD console that was not an add on, utilized two 32-bit processors and preceded both the Sony PlayStation and the Nintendo 64. However, poor sales in the West (including the traditional stronghold markets in Europe) led to the console being abandoned. The lack of a strong Sonic title (and titles based on other Genesis franchises) and its high price in comparison to the PlayStation were among the reasons for the failure of the console.[20] Notable titles include several titles exclusive to the Japanese market, like Radiant Silvergun and Sakura Taisen, involving fighting games like Last Bronx, rail shooters, such as Panzer Dragoon and The House of the Dead and a few well regarded RPGs; Panzer Dragoon Saga, Grandia, Albert Odyssey: Legend of Eldean, Shining Force III, Dragon Force, Shining Wisdom, Shining the Holy Ark and Magic Knight Rayearth. Tomb Raider was initially developed with the Sega Saturn in mind, but was quickly ported to the Sony PlayStation. With the Saturn's failure to attract the greater market share, development for the sequels were focused on Sony's console, and Lara Croft ironically became an unofficial mascot for the system.[21]

In 1997, Sega entered into a short-lived merger with Bandai. However it was later called off, citing "cultural differences" between the two companies.[22]

Dreamcast

On November 27, 1998, Sega launched the Dreamcast game console, Sega's final console, in Japan. The Dreamcast was competitively priced, partly due to the use of off-the-shelf components, but it also featured technology that allowed for more technically impressive games than its direct competitors, the Nintendo 64 and PlayStation. An analog 56k modem was also included, allowing gamers to play multi-player games online. Featuring titles such as the action-puzzle title ChuChu Rocket!, Phantasy Star Online, the first console-based MMORPG, "Quake 3 Arena" and the innovative Alien Front Online, the first console game with online voice chat.

Japanese/American Sega Dreamcast and European Controller with VMU. Notice the different color swirls

The Dreamcast's launch in Japan was a failure. Launching with a small library of software and in the shadow of the upcoming PS2, the system would not gain great success, despite several successful games in the region. The Western launch a year later was accompanied by a large amount of both first-party and third-party software and an aggressive marketing campaign. It was extremely successful and earned the distinction of "most successful hardware launch in history," selling a then-unprecedented 500,000 consoles in its first week in North America.[23] On November 1, 2000, Sega changed its company name from Sega Enterprises, Ltd. to Sega Corporation.[24] Sega was able to hold onto this momentum in the US almost until the launch of Sony's PlayStation 2. The Dreamcast is home to several innovative and critically acclaimed games of the time, including one of the first cel-shaded titles, Jet Set Radio (Jet Grind Radio in North America); Seaman, a game involving communication with a fish-type creature via microphone; Samba de Amigo, a rhythm game involving the use of maracas, and Shenmue, an adventure game of vast scope with freeform gameplay and a striking attempt at creating a detailed in-game city.

Faced with debt and competition from Sony, Nintendo, and Microsoft, Sega discontinued the Dreamcast hardware in 2001. The final game Sega released for it was Puyo Puyo Fever in 2004.

Amusement business (1989–2001)

Sega introduced the Model series of arcade hardware which saw the release of Virtua Fighter and Virtua Racing which laid the foundation for 3D racing and fighting games[25] The first Purikara machine in Japan was made jointly by Atlus and Sega in 1995. In 1996 Sega opened Joypolis, with overseas variants called SegaWorld, Sega Republic, and Gameworks. Sega also released the NAOMI series, which were the last arcade boards built uniquely rather than being based on existing consoles and PC architecture. Derby Owners Club was the first large-scale arcade machine with IC cards, and Virtua Fighter 4 the first arcade game with internet functionality. Both of these features have become a staple in Japanese arcades.[26]

Shift to third-party software developer (2001–2005)

Sega's financial trouble in the 1998–2002 time periods. This financial data came from their Annual Reports.[27][28][29][30]

In late 1999, Sega Enterprises Chairman Isao Okawa spoke at an Okawa Foundation meeting, saying that Sega's focus in the future would shift from hardware to software, but adding that they were still fully behind the Dreamcast. On January 23, 2001, a story ran in Nihon Keizai Shimbun that said Sega was going to cease production of the Dreamcast and develop software for other platforms.[31] After the initial denial, Sega Japan then put out a press release confirming they were considering producing software for PlayStation 2 and Game Boy Advance as part of their "New Management Policy".[32][33] Then on January 31, 2001, Sega of America officially announced they were becoming a third-party software publisher.[2]

The company has since developed primarily into a platform-neutral software company, known as a "third-party publisher", that creates games that will launch on a variety of game consoles produced by other companies, many of their former rivals, the first of which was a port of ChuChu Rocket! to Nintendo's Game Boy Advance.

By March 31, 2002, Sega had five consecutive fiscal years of net losses.[34] To help with Sega's debt, CSK founder Isao Okawa, before his death in 2001, gave the company a $695.7 million private donation,[35] and also talked to Microsoft about a sale or a merger with their Xbox division, but those talks failed.[36] Discussions also took place with Namco, Bandai, Electronic Arts and again with Microsoft.

In August 2003, Sammy bought the outstanding 22% of shares that CSK had,[37] and Sammy chairman Hajime Satomi became CEO of Sega.

During mid-2004, Sammy bought a controlling share in Sega Corporation at a cost of $1.1 billion, creating the new company Sega Sammy Holdings, one of the biggest game manufacturing companies in the world.

Amusement business (2001–2005)

After the decline of the global arcade industry around the 21st century[38] Sega introduced several novel concepts tailored to the japanese market such as trading card game machines, which includes World Club Champion Football for general audiences and Mushiking: The King of the Beetles for young children. Sega also further enhanced internet functionality in arcades with ALL.Net, introduced in 2004.[26]

2005–current

In 2005, Sega sold most of its major western studio Visual Concepts to Take Two Interactive. In 2006, Sega Europe purchased Sports Interactive, known for its Football Manager series, and Creative Assembly, known for its Total War series. In the same year, the Sega Racing Studio was also formed. Sega of America purchased Secret Level in 2006, which was renamed to Sega Studio San Francisco in 2008. In early 2008 Sega announced that Sega would re-establish an Australian presence, as a subsidiary of Sega of Europe, with a development studio branded as Sega Studio Australia. In 2013, following THQ's bankruptcy, Sega bought Relic Entertainment, known for its Company of Heroes series.[39] Sega has collaborated with many western studios such as Bizarre Creations, Backbone Entertainment, Monolith, Sumo Digital, Kuju Entertainment, Obsidian Entertainment and Gearbox Software. After the release of Sega Rally Revo, Sega shut down their Sega Racing Studio, following the closure of Sega Studio San Francisco in 2010 and Sega Studio Australia in 2012.

Sonic the Hedgehog continues to be an internationally recognised series, having sold 150 million units of the franchise.[40] The reception of games has ranged from negative,[41][42] mixed,[43][44] to generally positive.[45][46] In 2007, Sega and Nintendo teamed up using Sega's acquired Olympic license, to create the Mario and Sonic at the Olympic Games series, which has sold 20 million as of the latest installment. In the console and handheld business, Sega of Japan found success with the Ryu Ga Gotoku series (Yakuza overseas) and Hatsune Miku: Project DIVA series of games, and other games aimed at the Japanese market. Due to decline of packaged game sales both domestically and overseas[47], Sega has had a number of layoffs in 2012[48] and 2015[49] in order to focus on the digital game market. In the digital game market, Sega's biggest success is the F2P MMO Phantasy Star Online 2, along with the mobile games Chain Chronicle and Puyopuyo!! Quest. In Japan, Sega distributes titles from smaller Japanese game developers and localizations of western titles.[50][51]In 2012, Index Corporation has negotiated with Sega to distribute titles in Japan. In 2013, Index Corporation was purchased by Sega Sammy.[52] In 2014, Sega officially split Index game business and miscellaneous businesses, making Atlus, the video game developer and publisher, a wholly subsidiary of Sega.[53] Atlus is known for it's Megami Tensei and Persona series of role-playing games. In the 2010s Sega established several operational firms for its mobile phone, theme park and arcade businesses, in order to streamline operations and avoid prior losses. In 2012, Sega established Sega Networks Co., Ltd. for its mobile phone business; although separate at first, it merged with Sega in 2015, and established Sega Games Co., Ltd. These new divisions will replace the former Sega Corporation, and the new Sega Holdings Co., Ltd will contain all entertainment companies from the Sega Sammy group.[54]

Amusement business (2005–current)

Hajime Satomi, the chairman of SEGA Sammy Holdings stated that Sega's activity will focus on their profit-making arcade business as opposed to their loss-making home software development.[55] Sega continued to develop games based on network and card aspects, in management, strategy and more action oriented genres. Games of this type include Sangokushi Taisen, Virtua Fighter 5 and Border Break. Sega also continued to develop kids card games (Oshare Majo: Love and Berry), prize games (UFO Catcher) and medal games (Starhorse). Sega Amusements was initially established to be a overseas distributor for Japanese titles. In recent times however they began developing local games themselves in order to appease to the small local arcade culture. Arcade culture in Japan has changed by catering for the hardcore fans who visit game centers more frequently.[56] Sega's arcade business contributed more to Sega Sammy profits than Sega's consumer profits by a year to year basis until the year 2014.[57] Due to the declining arcade business in Japan[58], development personell will be relocated to the consumer business, specifically the digital game area.[59]

In 2012, Sega refurbished its Joypolis theme park in Tokyo, Japan. Sega provided the 3D imaging for Hatsune Miku's holographic concerts. In 2013, in co-operation with BBC Earth, Sega opened the first interactive nature simulation museum, Orbi Yokohama.[60] In the 2010s Sega established several operational firms for its mobile phone, theme park and arcade businesses, in order to streamline operations and avoid prior losses. In 2012, Sega Entertainment Co., Ltd. was established for Sega's theme park business. And beginning in 2015, Sega Interactive Co., Ltd. was established for the Arcade business.[61] These new divisions will replace the former Sega Corporation, and the new Sega Holdings Co., Ltd will contain all entertainment companies from the Sega Sammy group.

Company personnel

Corporate executives

Japanese

North American

  • John Cheng: President of Sega of America (2012–present)
  • Mike Hayes: President of Sega of America (2009–2012)
  • Naoya Tsurumi: CEO of Sega of America (2005-2009)[64][65]
  • Simon Jeffery: President Sega of America (2003–2009)
  • Peter Moore: President Sega of America(1999–2003)
  • Bernie Stolar: President Sega of America(1996–1999)
  • Tom Kalinske: President Sega of America(1991–1996)
  • Michael Katz: President Sega of America(1989–1991)
  • Bruce Lowry: President Sega of America(1986–1988)[66]
  • David Rosen: Cofounder, board member

European

  • Jürgen Post: President of Sega of Europe (2012–present)
  • Mike Hayes: President of Sega of Europe (2009–2012)
  • Robert Deith: Cofounder/chairman Sega Europe (1991–2001)
  • Naoya Tsurumi: CEO of Sega of Europe (2004-2009)[64][65]
  • Paul Williams: CEO of Sega Amusements Ltd. (heretofore)

Korean

  • Yasutaka Sato: President SPK (2005–2008)
  • Kazunobu Takita: President SPK (2008–2011)
  • Tooru Matsuo: President SPK (2011–2013)
  • Akira Nomoto: President SPK (2013–present)

Seal of Quality

The Sega Seal of Quality was an icon placed on the packaging of all video games that had Sega's official approval to be played on a Sega console system. As was the case with the Nintendo_Seal_of_Quality, the intention behind the "seal" was to avoid the mistakes that led to the Video_Game_Crash_of_1983 by ensuring that games were compatible with the intended Sega console system, and to censor content that Sega felt was inappropriate for their image.

The Sega Seal of Quality was an icon that Sega put on its own video games along with certain video games published by a third party software developer. As was the case with the Nintendo_Seal_of_Quality, the Sega seal appeared on a video game's box and marketing as a means of informing the consumer that Sega had previewed the game before its release to ensure that the game was fully compatible for its intended home console system, and had met a certain level of Sega's standard of quality (in terms of graphics, sound, challenge, and possible offensive content). However, the Sega Seal of Quality was otherwise very different than the Nintendo Seal of Quality.

Sega never required a third-party software developer to earn the official Sega Seal of Quality as a precondition for publication, although most developers chose to do so. Furthermore, a game could earn the seal even if it contained certain themes that its bigger competitor, Nintendo, would have prohibited: blood, scantily clad female villains, and graphic violence. Hence, the Sega Seal of Quality was given out to Sega_Genesis games that depicted blood (Splatterhouse_2, Techno_Cop), and scantily clad females (Streets_of_Rage, Final_Fight_CD).

Video games released on a Sega home console system were still censored for other taboo or controversial depictions; i.e. Profanity, Nudity, prostitution, homosexuality. However, this was done by the software developer and not as a requirement issued by Sega to the developer.

In 1993, Sega of America permitted Acclaim to keep the graphic violence and gore in its port of Midway's popular Arcade_game titled Mortal Kombat. As this game and other games sparked a national controversy over the violent content in video games, Sega created the Videogame_Rating_Council to give a descriptive rating to every game sold on a Sega home console system in the United States. This rating, along with the seal, would appear on the game's box and marketing. The Videogame Rating Council was phased out in 1994 with the adoption of the industry wide Entertainment_Software_Rating_Board.

Sega gradually shifted the scope of their seal of quality to focus less on content and more on assuring consumers that a game was fully compatible with its intended home console system. The Sega Seal is no longer seen on any games as Sega stopped producing games consoles, home or handheld, after the discontinuation of the Dreamcast in March 2001.[67]

See also

References

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  2. ^ a b Shahed Ahmed (January 31, 2001). "Sega announces drastic restructuring". GameSpot. Retrieved September 20, 2009.
  3. ^ http://www.guinnessworldrecords.com/world-records/most-prolific-producer-of-arcade-machines
  4. ^ "Corporate." Sega. Retrieved on January 13, 2009.
  5. ^ Angwin, Julie and Laura Evenson. "Sega Expected to Move HQ To S.F. From Redwood City." San Francisco Chronicle. Thursday June 11, 1998. Retrieved on January 13, 2009.
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  63. ^ Kent, Steven (2001). "Three Horses and a Pony". The Ultimate History of Video Games: From Pong to Pokémon and Beyond- The Story That Touched Our Lives and Changed the World (First ed.). Roseville, California: Prima Publishing. p. 589. ISBN 0-7615-3643-4. In his last days, Okawa forgave Sega's debts to him and returned all of his shares of Sega and CSK stock as a gift-in Sega's case, a $695 million gift that would help the company survive the transition of becoming a multiplatform software manufacturer.
  64. ^ a b "SEGA Integrates SEGA of America and SEGA Europe Management Teams To Drive Growth In Western Markets". Retrieved May 20, 2014.
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  67. ^ https://books.google.co.uk/books?id=7AsEAAAAMBAJ&pg=PA58&lpg=PA58&dq=Sega+Seal+of+Quality&source=bl&ots=Yuk9qKA6-t&sig=b1cOZfc0N8fx6K-dlg259gdC3UU&hl=en&sa=X&ei=PUQmVfK2Kc7-aKPAgbgF&ved=0CEkQ6AEwCTgK#v=onepage&q=Sega%20Seal%20of%20Quality&f=false. {{cite web}}: Missing or empty |title= (help)

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