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.
Game Gear
Plans for a 16-bit successor to the Game Gear were made to bring Sega's handheld gaming into the fifth generation of video games, but a new handheld system never materialized for Sega, leaving only the Genesis Nomad, a portable version of the Genesis, to take its place. Moreover, the Nomad was intended to supplement the Game Gear rather than replace it; in press coverage leading up to the Nomad's release, Sega representatives said the company was not dropping support for the Game Gear in favor of the Nomad, and that "We believe the two can co-exist". Though the Nomad had been released in 1995, Sega did not officially end support for the Game Gear until 1996 in Japan, and 1997 worldwide.