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.
Video game console
Sega scaled down and adapted their Sega System 16 (used to power arcade hits like Altered Beast and Shinobi) into the Mega Drive (sold as the Genesis in North America) and released it with a near arcade-perfect port of Altered Beast. Sega's console met lukewarm sales in Japan, but skyrocketed to first place in PAL markets, and made major inroads in North America. Propelled by its effective "Genesis does what Nintendon't" marketing campaign, Sega capitalized on the Genesis's technological superiority over the NES, faithful ports of popular arcade games, and competitive pricing. The arcade gaming company SNK developed the high end Neo Geo MVS arcade system which used interchangeable cartridges similar to home consoles. Building on the success of the MVS, SNK repackaged the NeoGeo as the Neo Geo AES home console. Though technologically superior to the other fourth-generation consoles, the AES and its games were prohibitively expensive, which kept sales low and prevented it from expanding outside its niche market and into serious competition with Nintendo and Sega. The AES did, however, amass a dedicated cult following, allowing it to see new releases into the 2000s. Fourth generation graphics chips allowed these consoles to reproduce the art styles that were becoming popular in arcades and on home computers. These games often featured lavish background scenery, huge characters, broader color palettes, and increased emphasis on dithering and texture. Games written specifically for the NES, like "Megaman", "Shatterhand", and "Super Mario Bros. 3" were able to work cleverly within its limitations. Ports of the increasingly detailed arcade and home computer games came up with various solutions. For example, when Capcom released "Strider" in the arcade they created an entirely separate Strider game for the NES that only incorporated themes and characters from the arcade.