Fourth generation of video game consoles
Nintendo executives were initially reluctant to design a new system, but as the market transitioned to the newer hardware, Nintendo saw the erosion of the commanding market share it had built up with the Nintendo Entertainment System. Nintendo's fourth-generation console, the Super Famicom, was released in Japan on November 21, 1990; Nintendo's initial shipment of 300,000 units sold out within hours. The machine reached North America as the Super Nintendo Entertainment System on August 23, 1991, and Europe and Australia in April 1992.
Sega Meganet
Sega's 16-bit console, the Sega Genesis (known as Mega Drive in most areas outside of North America) was released in Japan on October 29, 1988, though the launch was overshadowed by Nintendo's release of "Super Mario Bros. 3" a week earlier. Positive coverage from magazines "Famitsu" and "Beep!" helped to establish a following, but Sega only managed to ship 400,000 units in the first year. In order to draw a larger audience, Sega began work on an Internet service, similar to what Nintendo had attempted with the "Famicom Tsushin" for the NES.