Dreamcast
Released in 1988, the Sega Genesis (known as the Sega Mega Drive in Japan, Europe and Brazil) was Sega's entry into the fourth generation of video game consoles. Selling 30.75 million units worldwide, the Genesis was the most successful console Sega ever released. The successor to the Genesis, the Sega Saturn, was released in Japan in 1994. The Saturn was a CD-ROM-based console that displayed both 2D and 3D computer graphics, but its complex dual-CPU architecture made it more difficult to program for than its chief competitor, the Sony PlayStation. Although the Saturn debuted before the PlayStation in both Japan and the United States, its surprise U.S. launch—which came four months earlier than originally scheduled—was marred by a lack of distribution, which remained a continuing problem for the system. Moreover, Sega's early release was undermined by Sony's simultaneous announcement that the PlayStation would retail for US$299—compared to the Saturn's initial price of $399. Nintendo's long delay in releasing a competing 3D console and the damage done to Sega's reputation by poorly supported add-ons for the Genesis (particularly the Sega 32X) allowed Sony to establish a foothold in the market. The PlayStation was immediately successful in the U.S., in part due to a massive advertising campaign and strong third-party support engendered by Sony's excellent development tools and liberal $10 licensing fee. Sony's success was further aided by a price war in which Sega lowered the price of the Saturn from $399 to $299 and then from $299 to $199 in order to match the price of the PlayStation–even though Saturn hardware was more expensive to manufacture and the PlayStation enjoyed a larger software library. Losses on the Saturn hardware contributed to Sega's financial problems, which saw the company's revenue decline between 1992 and 1995 as part of an industry-wide slowdown. Furthermore, Sega's focus on the Saturn over the Genesis prevented it from fully capitalizing on the continued strength of the 16-bit market.
List of commercial failures in video gaming
The Nomad, a handheld game console by Sega released in North America in October 1995, is a portable variation of Sega's home console, the Genesis (known as the Mega Drive outside of North America). Designed from the Mega Jet, a portable version of the home console designed for use on airline flights in Japan, Nomad served to succeed the Game Gear and was the last handheld console released by Sega. Released late in the Genesis era, the Nomad had a short lifespan. Sold exclusively in North America, the Nomad was never officially released worldwide, and employs regional lockout. The handheld itself was incompatible with several Genesis peripherals, including the Power Base Converter, the Sega CD, and the Sega 32X. The release was five years into the market span of the Genesis, with an existing library of more than 500 Genesis games. With the Nomad's late release several months after the launch of the Saturn, this handheld is said to have suffered from its poorly timed launch. Sega decided to stop focusing on the Genesis in 1999, several months before the release of the Dreamcast, by which time the Nomad was being sold at less than a third of its original price. Reception for the Nomad is mixed between its uniqueness and its poor timing into the market. Blake Snow of GamePro listed the Nomad as fifth on his list of the "10 Worst-Selling Handhelds of All Time," criticizing its poor timing into the market, inadequate advertising, and poor battery life.