Sega Saturn
Released in 1988, the Genesis (known as the Mega Drive in Europe, Japan and Australia) was Sega's entry into the fourth generation of video game consoles. In mid-1990, Sega CEO Hayao Nakayama hired Tom Kalinske as president and CEO of Sega of America. Kalinske developed a four-point plan for sales of the Genesis: lower the price of the console, create a U.S.-based team to develop games targeted at the American market, continue aggressive advertising campaigns, and sell "Sonic the Hedgehog" with the console. The Japanese board of directors initially disapproved of the plan, but all four points were approved by Nakayama, who told Kalinske, "I hired you to make the decisions for Europe and the Americas, so go ahead and do it." Magazines praised "Sonic" as one of the greatest games ever made, and Sega's console finally took off as customers who had been waiting for the Super Nintendo Entertainment System (SNES) decided to purchase a Genesis instead. However, the release of a CD-based add-on for the Genesis, the Sega CD (known as Mega-CD outside of North America), was commercially disappointing.
Sega Channel
In early 1995, Sega CEO Hayao Nakayama decided to end development on the Sega Genesis and its add-ons, the Sega CD and Sega 32X. This decision was made to support the Sega Saturn, which had been released in Japan already. This placed the release of the Sega Channel right at the height of the Genesis' decline from the market. At its peak, Sega Channel had over 250,000 subscribers, but by 1997, the number of subscribers had dropped to 230,000, two years after Nakayama made the decision to shift focus from the Genesis to the Saturn. Though Sega looked at options to bring the service to PCs, the service was eventually discontinued by July 31, 1998.