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.
Sega Genesis
The Mega-CD sold only 100,000 units during its first year in Japan, falling well below expectations. Although many consumers blamed the add-on's high launch price, it also suffered from a tiny software library; only two games were available at launch. This was due in part to the long delay before Sega made its software development kit available to third-party developers. Sales were more successful in North America and Europe, although the novelty of FMV and CD-enhanced games quickly wore off as many of the system's later games were met with lukewarm or negative reviews. In 1995, Sega announced a shift in focus to its new console, the Saturn, and discontinued all advertising for Genesis hardware, including the Sega CD. The add-on sold 2.24 million units worldwide.