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.
Handheld game console
Following Sega's success with the Game Gear, they began development on a successor during the early 1990s, which was intended to feature a touchscreen interface, many years before the Nintendo DS. However, such a technology was very expensive at the time, and the handheld itself was estimated to have cost around $289 were it to be released. Sega eventually chose to shelve the idea and instead release the Genesis Nomad, a handheld version of the Genesis, as the successor.