Master System

Lore & Background

Sega released its first video game console, the SG-1000, in Japan on July 15, 1983, the same day Nintendo launched the Family Computer. In 1984, parent company Gulf and Western Industries divested its non-core businesses including Sega, and Sega president Hayao Nakayama was installed as CEO. Nakayama and Sega co-founder David Rosen arranged a management buyout with backing from CSK Corporation, installing CSK CEO Isao Okawa as chairman. On July 31, 1984, Sega released the SG-1000 II, a revised version with detachable controllers. Hoping to better compete with Nintendo, Sega released the Mark III in Japan on October 20, 1985 at ¥15,000. The Mark III was engineered by the same team as the SG-1000, including Hideki Sato and Masami Ishikawa. The Mark III's chip was designed in-house, based around the unit in Sega's System 2 arcade system board. Though its hardware was more powerful than the Famicom, the Mark III was not successful on launch, partly due to Nintendo's licensing practices requiring platform exclusivity.

For North America, Sega of America was established in 1986. Bruce Lowry, formerly Nintendo of America's vice president of sales, was hired and chose the name 'Sega of America'. The Mark III was rebranded as the Master System, a name chosen by employees throwing darts at a whiteboard. The console's futuristic design was intended to appeal to Western tastes, and the white packaging was inspired by Apple computer products. The Master System was first revealed at the Summer CES in Chicago in June 1986, and launched in September 1986 at $200, packaged with the 'Power Base' console, a light gun, two controllers, and a multicart with Hang-On and Safari Hunt. In 1987, amid struggling US sales, Sega sold US distribution rights to toy company Tonka, which had no experience with electronic entertainment systems. Tonka blocked localization of several popular Japanese games and became less willing to invest in video games after taking massive loans to purchase Kenner Toys in 1987.

The Master System was launched in Europe in August 1987, distributed by Mastertronic in the United Kingdom, Master Games in France, and Ariolasoft in West Germany. Mastertronic advertised it as 'an arcade in the home' and launched it at £99. Advance orders from retailers were high, but Sega proved unable to deliver inventory until Boxing Day on December 26. The original Master System models use both cartridges and Sega Cards. Accessories include a light gun and 3D glasses. The later Master System II removed the card slot, becoming a cartridge-only system, and is incompatible with the 3D glasses.

Reader's Guide

As a third-generation console, the Master System was released in competition with the Nintendo Entertainment System. Its library is smaller and with fewer well-reviewed games than the NES, due in part to Nintendo licensing policies requiring platform exclusivity. Though the Master System had newer, improved hardware, it failed to overturn Nintendo's market share advantage in Japan, North America, and most of Western Europe. However, it attained greater success in some markets, including the United Kingdom, Belgium, Spain, Brazil, South Korea, New Zealand, and Australia. The Master System is estimated to have sold 13 million units worldwide. In addition, Tectoy has sold licensed Master System variants in Brazil. Retrospective criticism has recognized its role in the development of the Sega Genesis, and a number of well-received games, particularly in PAL (including PAL-M) regions, but is critical of its limited library in the NTSC regions, which were dominated by the NES.

Did You Know?

• The Master System was originally a remodeled export version of the Sega Mark III.
• The name 'Master System' was chosen by Sega of America employees throwing darts at a whiteboard of suggested names.
• The Master System II, released in 1990, removed the card slot and is incompatible with the 3D glasses.
• In 1987, Sega sold US distribution rights for the Master System to toy company Tonka.