Early Days (Pre-1983)
Origin of the Name:
The Sega name originated from American companies, Service Games and David Rosen's company, which merged in Japan in the mid-1960s
Gulf+Western Acquisition:
In 1969, Gulf and Western Industries acquired the Japanese company. This allowed Sega to expand its presence in the US
Sega Enterprises, Inc. (1974):
A US branch was established in Los Angeles to import Japanese arcade games and produce its own.
Expansion:
The division acquired Gremlin Industries to increase production capacity and break into the American arcade market. It also began developing arcade ports for the early home market
Downturn and Sale:
The arcade business declined in the early 1980s, and Sega Electronics (the US division) sold its assets to Bally Midway in 1983.
Re-Entry and Dominance (1986-1990s)
Sega of America, Inc. (1986):
A new entity, Sega of America, Inc., was formed to market the Sega Master System and eventually become Sega's primary North American base
Success of the Sega Genesis:
This era saw the immense success of the Sega Genesis console, which competed directly with Nintendo and established Sega as a major player in the console market
Hardware Add-ons:
Sega continued to innovate with add-ons like the Sega CD and 32X, though these were met with mixed success and ultimately didn't stop the rise of competitors like the Sony PlayStation
Technological Innovation:
Sega also explored other avenues, including the Sega Channel subscription service in 1994, which delivered games via cable
Later Years and Transition
Consolidation:
After the introduction of the Saturn and the subsequent decline of its console business, Sega sold most of its console hardware assets
Focus on Software:
Sega has since focused on software development for various platforms, including PC and mobile, while maintaining its presence in arcades and theme parks.
Current Status:
Sega of America is now headquartered in Irvine, California, and remains responsible for Sega Corporation's North American operations, serving as a key subsidiary in the company's global structure.
