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.
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.