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.
1993 congressional hearings on video games
During this period, two key players were Nintendo and Sega. Nintendo had been instrumental in helping to recover the North American market after the crash with the introduction of the Nintendo Entertainment System; in 1990, with its release of the Super Nintendo Entertainment System (SNES), Nintendo sales accounted for 90% of the US market. However, to avoid repeating one of the issues that caused the crash, Nintendo took care to limit and review what third-party games could be made for its platforms to avoid a glut of poor games. Sega, which had already released its Mega Drive in Japan, found their sales to be lagging behind Nintendo. In a aggressive campaign aimed at the United States market, the Mega Drive was renamed the Sega Genesis, and heavily pushed the game "Sonic the Hedgehog", with its titular character aimed to become Sega's mascot and rival that of Nintendo's Mario. Sega was less selective about what titles it wanted for the platform, allowing many more third-party games onto the system to increase its library in contrast to Nintendo's. Further, Sega used marketing language purposely aimed at Nintendo, such as "Sega does what Nintendon't". By 1992, Sega had obtained 65% of the US gaming market, overtaking Nintendo's dominant position. Subsequently a strong rivalry between Nintendo and Sega was formed, referred as the "Console Wars", which continued through the next decade and into the fifth generation of consoles, after which Sega dropped out of the hardware market and became principally a game developer and publisher, and at times working collaborative with Nintendo.