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.
Fourth generation of video game consoles
The console was never popular in Japan (being regularly outsold by the PC Engine), but still managed to sell 40 million units worldwide. By late 1995, Sega was supporting five different consoles and two add-ons, and Sega Enterprises chose to discontinue the Mega Drive in Japan to concentrate on the new Sega Saturn. While this made perfect sense for the Japanese market, it was disastrous in North America: the market for Genesis games was much larger than for the Saturn, but Sega was left without the inventory or software to meet demand.