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. Website Sega Games Co., Ltd., originally short for Service Games and officially styled as SEGA, is a Japanese video game and publisher headquartered in Tokyo, Japan, with offices around the world. Sega developed and manufactured numerous from 1983 to 2001, but after financial losses incurred from its console, the company restructured to focus on providing software as a third-party developer.

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Sega remains the world's most prolific producer, with over 500 games in over 70 franchises on more than 20 different since 1981. Sega is also known for publishing several, notably, and.

Sega Games is a subsidiary of Sega Holdings, which itself is part of, which is invested in industries outside of video games. Sega's North American division, Sega of America, is headquartered in, having moved from in 2015. Sega's European division, Sega Europe, is headquartered in. SEGA Diamond 3 Star In 1940, American businessmen Martin Bromley, Irving Bromberg, and James Humpert formed a company called Standard Games in, Hawaii, to provide coin-operated amusement machines to military bases.

They saw that the onset of, and the consequent increase in the number of military personnel, would mean there would be demand for something for those stationed at military bases to do in their leisure time. After the war, the founders sold that company and established a new distributor called Service Games, named for the military focus. In 1951, the government of the United States outlawed slot machines in US territories, so Bromley sent two of his employees, Richard Stewart and Ray LeMaire, to Tokyo, Japan, in 1952 to establish a new distributor.

The company provided coin-operated slot machines to U.S. Bases in Japan and changed its name again to Service Games of Japan by 1953., an American officer in the stationed in Japan, launched a two-minute photo booth business in Tokyo in 1954. This company eventually became Rosen Enterprises, and in 1957, began importing coin-operated games to Japan. On May 31, 1960, Service Games Japan was closed. A few days later, on June 3, two new companies were established to take over its business activities, Nihon Goraku Bussan and Nihon Kikai Seizo.

By 1965, Rosen Enterprises grew to a chain of over 200 arcades. Rosen then orchestrated a merger between Rosen Enterprises and Nihon Goraku Bussan, becoming chief executive of the new company, Sega Enterprises, which derived its name from Service Games. Within a year, Sega began the transition from importer to manufacturer, with the release of the submarine simulator game,. The game sported light and sound effects considered innovative for that time, eventually becoming quite successful in Japan. It was soon exported to both Europe and the United States, becoming the first in the US to cost 25 cents per play. In 1969, Rosen sold Sega to American conglomerate, although he remained as CEO following the sale. Under Rosen's leadership, Sega continued to grow and prosper, and in 1974, Gulf and Western made Sega Enterprises, ltd.

A subsidiary of an American company renamed Sega Enterprises, Inc., allowing them to take the company's stock public. Golden age of arcade games (1978–1983) Sega prospered heavily from the of the late 1970s, with revenues climbing to over 100 million by 1979.

In 1982, Sega's revenues surpassed $214 million. That year they introduced the first game with, the industry's first 3D game, and the first laserdisc video game,.

Astron Belt wasn't released in the U.S. Until 1983, after. Other notable games from Sega during this period are (1979), (1979), (1980), (1981), (1981), (1981), and (1982). Entry into the home console market (1982–1989) In 1983-4, Sega published versions of some of its arcade games and also from., and were licensed to as launch games for the console in 1982. Some of these and other games were licensed to different companies for 8-bit computer versions.

The port of is from, for example, while the port is from. An overabundance of games in 1983 led to the, causing Sega's revenues to drop to $136 million. Seeking an alternate source of revenue from the slumping arcade market, Sega designed and released its first home video game console, the for the third generation of home consoles. G&W sold the U.S. Assets of Sega Enterprises that same year to pinball manufacturer, and in January 1984, Rosen resigned his post with the company. The SG-1000 had an unexpectedly successful launch year but was quickly pushed into obscurity by 's which, though it launched the same day as the SG-1000, had more advanced hardware and greater third party support. The Japanese assets of Sega were purchased for $38 million by a group of investors led by Rosen, Robert Deith, and Hayao Nakayama, a Japanese businessman who owned Esco Boueki (Esco Trading) an arcade game distribution company that had been acquired by Rosen in 1979.

Nakayama became the new CEO of Sega, Robert Deith chairman of the board, and Rosen became head of its subsidiary in the United States. In 1984, the multibillion-dollar Japanese conglomerate bought Sega, renamed it Sega Enterprises, headquartered it in Japan, and two years later, shares of its stock were being traded on the. David Rosen's friend, the chairman of CSK, became chairman of Sega. The, released in North America in 1986 and Europe in 1987 Sega also released the and featuring, who would be Sega's unofficial until he was replaced by in 1991. While the Master System was technically superior to the NES, it failed to capture market share in North America and Japan due to highly aggressive strategies by Nintendo and ineffective marketing by, who marketed the console on behalf of SEGA in the United States. However, the Master System was highly successful in Europe, Australia, New Zealand, and Brazil with games still being sold well into the 1990s alongside the Mega Drive and Nintendo's NES and SNES.

In the mid-1980s, Sega released and, arcade games that make use of cabinet functionality and. Sega also released the 360-degree rotating machine. For arcade system boards, Sega released the series and the series.

UFO Catcher was introduced in 1985 and is Japan's most commonly installed game. Sega was also one of the first to introduce with World Bingo and World Derby in the 1980s, a sub-industry within Japanese arcades up to its current day. Expansion and mainstream success (1989–2001). The Sega World Sydney building in 1998 With the introduction of the in North America in 1989, Sega of America launched an anti- campaign to carry the momentum to the new generation of games, with its slogan 'Genesis does what Nintendon't.' This was initially implemented by Sega of America President Michael Katz. When Nintendo launched its in North America in August 1991, Sega changed its slogan to 'Welcome to the next level.'

The same year, Sega of America's leadership passed from Katz to, who further escalated the ' that was developing. As a preemptive strike against the release of the SNES, Sega re-branded itself with a new game and mascot,.

This shift led to a wider success for the Genesis and would eventually propel Sega to 65% of the market in North America for a brief time. Simultaneously, after much delay, Sega released the in Japan in 1991 and in North America in 1992 as a hardware add-on to the Genesis, greatly reducing space limitations on their games. Was also released in 1992 for the Genesis, and became the most successful game Sega ever produced, selling over six million copies in total.

During this period, local North American development also increased with the establishments of in 1990, Sega Midwest Studio in 1992, Sega Multimedia Studio in 1993, and the acquisition of Interactive Designs in 1992. In 1990, Sega launched the to compete against Nintendo's. However, due to issues with its short battery life, lack of original games, and weak support from Sega, the Game Gear was unable to surpass the Game Boy, selling approximately 11 million units. The Game Gear was succeeded by the in 1995, and discontinued in 1997. In 1992, Sega introduced the series of arcade hardware, which saw the release of and, which laid the foundation for 3D racing and fighting games. In 1994, Sega released the in an attempt to upgrade the Genesis to the standards of more advanced systems at the time. It sold well initially, but had problems with lack of software and hype about the upcoming and 's.

Within a year, it was in the bargain bins of many stores. On November 22, 1994, Sega launched the Sega Saturn in Japan. It utilized two 32-bit processors. However, poor sales in the West led to the console being abandoned by 1998. The lack of strong games based on established Genesis franchises, along with its high price in comparison to the Sony PlayStation, were among the reasons for the console's failure.

Notable games in Japan include, and arcade ports such as, and. Sega made forays in the market with the 1995 establishment of, which was tasked with creating original Saturn and PC games. The mid-1990s also saw Sega making efforts to expand beyond its image as a strictly kids-oriented, family entertainment company, by publishing a number of games with extreme violence and sexual themes, and introducing the 'Deep Water' label to mark games with mature content. In December 1994, a subscription gaming service delivered by local cable companies affiliated with, was launched in the United States, through which subscribers received a special cartridge adapter that connected to the cable connection.

At its peak, the Sega Channel had approximately 250,000 subscribers. Various technical issues began disrupting the service in late 1997, eventually leading to the Sega Channel being discontinued worldwide in 1998. In 1996, Sega operated a number of in-door theme parks not only in Japan with, but also overseas, with branded arcades in the UK and Australia. In March 1998, Sega obtained the rights to the Puyo Puyo series and its characters from Compile.

While Compile continued to develop and publish Puyo Puyo games, even on platforms that Sega was competing against. These games include Sega in their copyright information. On November 27, 1998, Sega launched the in Japan.

The console was competitively priced, partly due to the use of off-the-shelf components, but it also featured technology that allowed for more technically impressive games than its direct competitors, the Nintendo 64 and PlayStation. An analog 56k was also included, allowing for online multiplayer. It featured games such as the action-puzzle game, the first console-based (MMORPG), and, the first console game with online voice chat. The Dreamcast's launch in Japan was a failure; launching with a small library of software and in the shadow of the upcoming, the system would gain little ground, despite several successful games in the region. After closures of all their former American developers in 1995, and the closure of the PC SegaSoft division, Sega invested in the American and the French, although the latter was closed in 2001. The Dreamcast's western launch in 1999 was accompanied by a large amount of both first-party and third-party software and an aggressive marketing campaign.

In contrast to the Japanese launch, the Western launch earned the distinction of the 'most successful hardware launch in history,' selling a then-unprecedented 500,000 consoles in its first week in North America. Sega was able to hold onto this momentum in the US almost until the launch of Sony's PlayStation 2. The Dreamcast is home to several innovative and critically acclaimed games, including one of the first games, ( Jet Grind Radio in North America);, a game involving communication with a fish-type creature via microphone;, a rhythm game involving the use of maracas, and, a large-scope adventure game with and a detailed in-game city. Sega also produced the series, which were the last arcade boards built uniquely rather than being based on existing consoles and PC architecture. In late 1999, Sega Enterprises chairman Isao Okawa spoke at an Okawa Foundation meeting, saying that Sega's focus in the future would shift from hardware to software, but adding that they were still fully behind the Dreamcast.

On November 1, 2000, Sega changed its company name from Sega Enterprises to Sega Corporation. Shift to third-party software development (2001–2005).

Sega's financial trouble in the 1998–2002 period On January 23, 2001, a story ran in claiming that Sega would cease production of the Dreamcast and develop software for other platforms. After initial denial, Sega Japan put out a press release confirming they were considering producing software for the and as part of their 'new management policy'. On January 31, 2001, Sega of America announced they would become a third-party software publisher. The company now oversees games that launch on game consoles produced by other companies, including many of their former rivals; the first was a port of to Nintendo's. On March 31, 2001, the Dreamcast was discontinued. By March 31, 2002, Sega had five consecutive fiscal years of net losses.

To help with Sega's debt, CSK founder Isao Okawa, before his death in 2001, gave the company a $692 million private donation, and talked to Microsoft about a sale or merger with their Xbox division, but those talks failed. Discussions also took place with, and again with. In August 2003, one of the biggest and manufacturing companies, bought the outstanding 22% of shares that CSK had, and Sammy chairman became CEO of Sega. In the same year, Hajime Satomi stated that Sega's activity will focus on their profitable arcade business as opposed to their loss-incurring home software development sector. After the decline of the global arcade industry around the 21st century, Sega introduced several novel concepts tailored to the Japanese market.

Was the first large-scale satellite arcade machine with IC cards for data storage. Were introduced, with games such as for general audiences and for young children. Sega also introduced internet functionality in arcades with in 2001, and further enhanced it with, introduced in 2004. During mid-2004, Sammy bought a controlling share in Sega Corporation at a cost of $1.1 billion, creating the new company, an entertainment conglomerate. Since then, Sega and Sammy became subsidiaries of the aforementioned holding company, with both companies operating independently, while the executive departments merged.

Continued expansion and acquisitions (2005–2013) In 2005, Sega sold its major western studio to, and purchased UK-based developer, known for its. In the same year, the was also formed by former employees. In 2006, Sega Europe purchased, known for its series. Sega of America purchased in 2006, which was renamed to Sega Studio San Francisco in 2008. In early 2008, Sega announced that they would re-establish an Australian presence, as a subsidiary of Sega of Europe, with a development studio branded as Sega Studio Australia.

In the same year, Sega launched a subscription based flash website called 'PlaySEGA' which played emulated versions of Sega Genesis as well original web-based flash games. It was subsequently shut down due to low subscription numbers. In 2013, following 's bankruptcy, Sega bought, known for its series. Sega has also collaborated with many western studios such as, and. In 2008, Sega announced the closure of Sega Racing Studio, although the studio was later acquired by Codemasters.

Closures of Sega Studio San Francisco and Sega Studio Australia followed in 2010 and 2012, respectively. The series continued to be internationally recognized, having sold 150 million in total, although the critical reception of games in the series has been mixed. In 2007, Sega and Nintendo teamed up using Sega's acquired license, to create the series, which has sold over 20 million in total. In the console and handheld business, Sega found success in Japan with the and series of games, amongst others primarily aimed at the Japanese market. In Japan, Sega distributes games from smaller Japanese game developers and localizations of western games. In 2013, was purchased by Sega Sammy after going bankrupt. After the buyout, Sega implemented a with Index, and re-branding the video game assets of the company as Atlus, a wholly owned subsidiary of Sega.

Atlus is known for its and series of role-playing games. For amusement arcades, Sega's most successful games continued to be based on network and card systems.

Games of this type include and. Arcade machine sales incurred higher profits than their console, portable, and PC games on a year-to-year basis until 2010s. In 2004, the chain of arcades became owned by Sega, until the chain was sold off in 2011.

In 2009, an indoor theme park in, opened to the public. In 2010, Sega began providing the 3D imaging for 's. In 2013, in co-operation with, Sega opened the first interactive nature simulation museum, Orbi Yokohama in Yokohama, Japan. Company reshuffling and digital market focus (2013–present). GiGO, a large 6 floor Sega game center on Chuo Dori, in front of the LAOX Aso-Bit-City in, Japan Due to the decline of packaged game sales both domestically and outside Japan in the 2010s, Sega began layoffs and reduction of their Western businesses, such as Sega shutting down five offices based in Europe and Australia on July 1, 2012.

This was done in order to focus on the digital game market, such as PC and mobile devices. The amount of gradually shrunk from 84 in 2005 to 32 in 2014. Because of the shrinking arcade business in Japan, development personnel would also be relocated to the digital game area. Sega gradually reduced its arcade centers from 450 facilities in 2005, to around 200 in 2015. In the mobile market, Sega released its first app on the with a version of in 2008. Since then, the strategies for Asian and Western markets have become independent.

The Western line-up consisted of emulations of games and pay-to-play apps, which were eventually overshadowed by more social and free-to-play games, eventually leading to 19 of the older mobile games being pulled due to quality concerns in May 2015. Beginning in 2012, Sega also began acquiring studios for mobile development, with studios such as Hardlight, and becoming fully owned subsidiaries. In the 2010s, Sega established operational firms for each of their businesses, in order to streamline operations.

In 2012, Sega established Sega Networks for its mobile games; and although separate at first, it merged with Sega Corporation in 2015. Sega Games is structured as a 'Consumer Online Company', while Sega Networks focuses on developing games for mobile devices. In 2012, Sega Entertainment was established for Sega's amusement facility business, and in 2015, Sega Interactive was established for the arcade game business. These new divisions would replace the former Sega Corporation, and the new Sega Holdings would consolidate all entertainment companies from the Sega Sammy Group, which became effective April 1, 2015.

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April 2015 also saw Haruki Satomi, son of Hajime Satomi, take office as President and CEO of Sega Games Co, Ltd. In January 2015, Sega of America announced their relocation from San Francisco to 's headquarters, which was completed later that year. Due to this corporal adjustment, Sega of America did not have their own booth. In September 2016 at the Tokyo Game Show, Sega announced that they acquired the intellectual property and development rights to all the games developed and published by from Kazue Matsuoka. Factors that influenced the acquisition included the former Technosoft president stating that they did not want the Technosoft brand to desist, and so handing over the intellectual properties to Sega was the only other option. Sega and Technosoft also had an established collaboration during the Genesis/Mega Drive era and so this pre-established relationship was also a factor when acquiring the brand rights to Technosoft games. Technosoft were best known for the franchise.

In April 2017, Sega Sammy Holdings announced a relocation of head office functions of the Sega Sammy Group and its major domestic subsidiaries located in the to by January 2018. Their stated reasoning was to promote cooperation among companies and creation of more active interaction of personnel, while pursuing efficient group management by consolidating scattered head office functions of the group. The companies planning to relocate to the head office are Sega Sammy Holdings, Sammy Corporation, Sega Holdings, Sega Games, Atlus, Sammy Network, and Dartslive. In October 2017, Sega of America announced its own online store, known as the Sega Shop.

Other products and services Animation On August 4, 1992, (the re-branded Tokyo Movie Shinsha) formed a capital and business alliance with Sega Enterprises. Notable collaborations between the two included, and. In 1995, Tokyo Movie Kyokuichi merged with the Tokyo Movie Shinsha animation production company, and in 2000, the company was re-branded as TMS Entertainment. On October 17, 2005, Sega Sammy Holdings announced that they acquired half majority stake in TMS Entertainment and subsidized the studio under Sega Sammy Holdings. On December 22, 2010, Sega Sammy Holdings acquired the remaining outstanding shares of TMS Entertainment, thus making TMS Entertainment a wholly owned subsidiary of Sega Sammy Holdings. In 2012, the head office of TMS Entertainment was relocated to Nakano, Tokyo, On April 27, 2015, TMS Entertainment was reorganized into Sega Holdings as part of its entertainment and contents division. In April 2017, Sega's re-branded CG production division was restructured into TMS Entertainment from Sega Holdings.

Motion pictures In 2003, Sega had plans of broadening its franchises to Hollywood co-operating with, but plans fell through. In 2015, Sega and the Japanese advertising agency, formed a joint venture called Stories LLC with the purpose of creating branded entertainment for film and TV. Stories LLC has exclusive licensing rights to adapt Sega properties into film and television. Properties in production include Shinobi with Marc Platt, Golden Axe, Virtua Fighter, The House of the Dead, and Crazy Taxi. Seal of Quality. (2010–2011). (2010–2011).

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