Sega

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SEGA didn't do very well in the hardware market. Their history is riddled with mistakes.. Their moment on top wasn't fo long, lasting just a few years before it all came crashing down. When SEGA retired from the hardware business, it felt like originality and creativity had lost the battle against bigger brand names. SEGA's way of doing business didn't pay off, and even as a third party they've continued to struggle.

SEGA's story goes hand in hand with that of Japan and its relationship with America. Following World War II, Japan was a defeated nation. The loss of industry and human life had left the country poor, and although the USA was there to support her growth, Japan would take time to recover from the war. Sega's creators came from America and, for various reasons, they all ended up in on Japan.

In 1964, Rosen Enterprises merged with Service Games, resulting in SEGA Enterprises Ltd.

The company began expanding rapidly, producing more and more elaborate hits, and recruiting new developers that would help to define the company creatively. SEGA's games would come to distinguish themselves from their peers with their eye-popping graphics that marked some of arcade gaming's baby steps into 3D. [|**Turbo**] became the first racing game to use sprite scaling with full-color graphics. [|**Zaxxon**] delivered scrolling graphics with an isometric view and 3D gameplay. [|**Buck Rogers: Planet of Zoom**] trumped both with its fast 3D scaling and detailed sprites. SEGA had become a leader in the arcade video game business.



The game industry was booming and SEGA along with it, but a storm was brewing in the industry, and David Rosen knew it before the rest of the world was willing to face it. He urged the arcade business to reform, and start offering conversion kits to allow operators to inexpensively turn over machines. This idea would later help the arcade industry to begin its second life, but at the time, his remarks were met only with boos and jeers. Rosen's fears were well founded, and when Atari began its downward spiral in 1983, many lost confidence in the industry. SEGA's benefactors (who by then included Paramount) began looking to get rid of the company.