Sonic Team
The initial team formed in 1990 and was composed of developers from Sega's Consumer Development division, including programmer Yuji Naka, artist Naoto Ohshima, and level designer Hirokazu Yasuhara. The team took the name Sonic Team in 1991 with the release of "Sonic the Hedgehog" for the Sega Genesis. The game was a major success that contributed to millions of Genesis sales. The next "Sonic" games were developed by Naka and Yasuhara in America at Sega Technical Institute, while Ohshima worked on "Sonic CD" in Japan. Naka returned to Japan in late 1994 to become the head of CS3, later renamed R&D #8. During this time, the division took on the Sonic Team brand but developed games that do not feature Sonic, such as "Nights into Dreams" (1996) and "Burning Rangers" (1998).
Home video game console
To compete with emerging next gen consoles, Nintendo released Donkey Kong Country which could display a wide range of tones (something common in fifth-generation games) by limiting the number of hues onscreen, and Star Fox which used an extra chip inside of the cartridge to display polygon graphics. Sega followed suit, releasing Vectorman and Virtua Racing (the latter of which used the Sega Virtua Processor). Sega also released the 32X, an add-on for the Genesis, while their Sega Saturn was still in development, and announced that they would replace the Genesis with the Neptune, a combination 32X and Genesis, and sell it as a budget console alongside their upcoming Saturn. Despite public statements from Sega claiming that they would continue to support the Genesis/32X throughout the next generation, Sega Enterprises quietly killed the Neptune project and forced Sega of America to abandon the 32X. The 32X's brief and confusing existence damaged public perception of the coming Saturn and Sega as a whole.