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.
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.