Sega CD
Released in 1988, the Genesis (known as the Mega Drive in Europe and Japan) was Sega's entry into the fourth generation of video game consoles. In mid-1990, Sega CEO Hayao Nakayama hired Tom Kalinske as CEO of Sega of America. Kalinske developed a four-point plan for sales of the Genesis: cut the console's price, develop games for the American market with a new American team, continue aggressive advertising campaigns, and ship "Sonic the Hedgehog" with the Genesis as a pack-in game. 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 yet 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.
Sonic Team
During the late 1980s and early 1990s, a rivalry formed between Sega and Nintendo due to the release of their 16-bit video game consoles: the Sega Genesis and the Super Nintendo Entertainment System. Sega needed a mascot character that would be as synonymous with their brand as Mario was to Nintendo. To distinguish themselves from Nintendo, Sega wanted a killer app and character that could appeal to an older demographic than preteens, demonstrate the capabilities of the Genesis, and ensure commercial success in North America.