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.
32X
Unveiled by Sega at June 1994's Consumer Electronics Show, the 32X was presented as a low-cost option for consumers looking to play 32-bit games. Developed in response to the Atari Jaguar and concerns that the Saturn would not make it to market by the end of 1994, the product was conceived as an entirely new console. At the suggestion of Sega of America executive Joe Miller and his team, the console was converted into an add-on to the existing Genesis and made more powerful. The final design contained two 32-bit central processing units and a 3D graphics processor. To bring the new add-on to market by its scheduled release date of November 1994, development of the new system and its games was rushed. The console failed to attract third-party video game developers and consumers because of the announcement of the Sega Saturn's simultaneous release in Japan. Sega's efforts to rush the 32X to market cut into available time for game development, resulting in a weak library of forty titles that could not fully use the add-on's hardware, including Genesis ports. By the end of 1994, the 32X had sold 665,000 units. After price reductions in 1995, it was discontinued in 1996 as Sega turned its focus to the Saturn.