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Bally Manufacturing , later renamed Bally Entertainment , was an American company that began as a pinball and slot machine manufacturer, and later expanded into casinos, video games, health clubs, and theme parks. It was acquired by Hilton Hotels in 1996.

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104-1053: The Sega Genesis , known as the Mega Drive outside North America, is a 16-bit fourth generation home video game console developed and sold by Sega . It was Sega's third console and the successor to the Master System . Sega released it in 1988 in Japan as the Mega Drive, and in 1989 in North America as the Genesis. In 1990, it was distributed as the Mega Drive by Virgin Mastertronic in Europe, Ozisoft in Australasia, and Tectoy in Brazil. In South Korea, it

208-485: A Texas Instruments SN76489 programmable sound generator , integrated with the Video Display Processor (VDP) , and a Yamaha YM2612 FM synthesizer chip. The Z80 processor is primarily used to control both sound chips to produce stereo music and sound effects. Most revisions of the original Genesis contain a discrete YM2612 and a separate YM7101 VDP; in a later revision, the chips were integrated into

312-627: A library of more than 900 games on ROM-based cartridges . Several add-ons were released, including a Power Base Converter to play Master System games. It was released in several different versions, some created by third parties. Sega created two network services to support the Genesis: Sega Meganet and Sega Channel . In Japan, the Mega Drive fared poorly against its two main competitors, Nintendo's Super Famicom and NEC 's PC Engine , but it achieved considerable success in North America, Brazil, and Europe. Contributing to its success

416-483: A "Blood Code". This technicality allowed Sega to release the game with a relatively low MA-13 rating. Meanwhile, the tamer SNES version shipped without a rating. The Genesis version of Mortal Kombat was well-received by gaming press, as well as fans, outselling the SNES version three- or four-to-one, while Nintendo was criticized for censoring the SNES version. Executive vice president of Nintendo of America Howard Lincoln

520-460: A 9-pin mini-DIN port on the back for composite video , RGB and stereo sound, and the standard RF switch. Earlier Model 1 consoles have a 9-pin extension port. An edge connector on the bottom right of the console can be connected to a peripheral. The standard controller features a rounded shape, a directional pad , three main buttons, and a start button. In 1993, Sega released a slightly smaller pad with three additional face buttons, similar to

624-604: A Genesis instead. The SNES debuted against an established competitor, while NEC's TurboGrafx-16 failed to gain traction, and NEC soon pulled out of the market. In large part due to the popularity of Sonic the Hedgehog , the Genesis outsold the SNES in the United States nearly two to one during the 1991 holiday season. Sega controlled 65% of the 16-bit console market in January 1992, the first time Nintendo had not been

728-400: A ball through a long winding tube. This concept was developed with Ohshima's character design and levels conceived by designer Hirokazu Yasuhara . Although Katz and Sega of America's marketing experts disliked Sonic , certain that it would not catch on with American children, Kalinske's strategy to place Sonic the Hedgehog as the pack-in game paid off. Sonic the Hedgehog greatly increased

832-422: A brief venture into the music business with their own record label, Bally Records . Moloney died in 1958, and the company briefly floundered. With the financial failure of its parent company, Bally was bought out by a group of investors in 1963. Throughout the 1960s, Bally continued to dominate the slot machine industry, cornering over 90% of the worldwide market by the end of the decade. In 1964, Bally introduced

936-507: A controlled room in EA headquarters nicknamed "Chernobyl", to which only one person was allowed access, Mike Schwartz. Schwartz reviewed Sega's copyrighted development manuals and tools, studied the Genesis hardware and games, and wrote original documentation that summarized his findings. The process took him about a month. His work was reviewed by EA's lawyers before being disseminated to Hayes and Nitchals to verify its originality, and subsequently to

1040-735: A line of fitness equipment and clothing owned by FAM Brands , which acquired the name outright in 2013. The rights to use the name for casinos were sold by Caesars in October 2020 to Twin River Worldwide Holdings, which then changed its own name to Bally's Corporation and said that it would rename most of its properties under the Bally's brand. In a related transaction, Bally's Corporation acquired Bally's Atlantic City from Caesars. In January 2022, Caesars announced that Bally's Las Vegas, which they retained, would be rebranded as

1144-414: A mascot character to compete with Nintendo's Mario series . The winning submission was a blue hedgehog with red shoes, Sonic , created by Naoto Ohshima , spawning one of the best-selling video game franchises in history. The gameplay of Sonic the Hedgehog originated with a tech demo created by Yuji Naka , who had developed a prototype platform game that involved a fast-moving character rolling in

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1248-471: A new partner to market the Genesis in North America and offered the rights to Atari Corporation , which did not yet have a 16-bit system. David Rosen made the proposal to Atari CEO Jack Tramiel and the president of Atari's Entertainment Electronics Division, Michael Katz. Tramiel declined to acquire the new console, deeming it too expensive, and instead opted to focus on the Atari ST . Sega decided to launch

1352-544: A representative of Bally who visited Australia." The company opened the Park Place Casino & Hotel on December 29, 1979. During the late 1970s and early 1980s, Midway was renamed Bally/Midway when it was consolidated with Bally's legacy pinball business. It became a primary source of income for Bally as an early arcade video game maker, obtaining licenses for three of the all-time most popular video games: Space Invaders , Pac-Man , and Ms. Pac-Man . In

1456-567: A single custom ASIC (FC1004). The back of the Model 1 console provides an RF output port (designed for use with antenna and cable systems) and a specialized 8-pin DIN port, which both provide video and audio output. Both outputs produce monophonic sound; a headphone jack on the front of the console produces stereo sound. On the Model 2, the DIN port, RF output port, and headphone jack are replaced by

1560-474: A stronger name. After reviewing more than 300 proposals, the company settled on "Mega Drive". In North America, the name was changed to "Genesis". Rosen said he insisted on the name as he disliked "Mega Drive" and wanted to represent "a new beginning" for Sega. Sato said some design elements changed, such as the gold "16-bit" wording, in case it was mistaken for yellow. He believed the changes represented different Japanese and American cultural values. Sega released

1664-521: A subsidiary manufacturing video slot machines and other casino equipment. Bally Total Fitness, burdened with debt from over-expansion and declining revenues after the 2008 recession , began selling off its clubs in the 2010s. Sales of large numbers of clubs to LA Fitness in 2011, Blast Fitness in 2012, and 24 Hour Fitness in 2014, along with closures of other clubs saw the chain dwindle. The last Bally Total Fitness club closed in October 2016. The Bally Total Fitness name had been used under license for

1768-555: A successor to the Master System almost immediately after that console launched. In 1987, Sega faced another threat to its console business when Japanese computer giant NEC released the PC Engine amid great publicity. To remain competitive against the two more established consumer electronics companies, Ishikawa and his team decided they needed to incorporate a 16-bit microprocessor into their new system to make an impact in

1872-538: A technical protection mechanism into a new edition of the Genesis released in 1990, referred to as the Genesis III. This new variation of the Genesis included a code known as the Trademark Security System (TMSS), which, when a game cartridge was inserted, would check for the presence of the string "SEGA" at a particular point in the memory contained in the cartridge. If the string was present,

1976-805: A two-part approach to build sales. The first part involved a marketing campaign to challenge Nintendo head-on and emphasize the more arcade-like experience available on the Genesis, with slogans including "Genesis does what Nintendon't". Since Nintendo owned the console rights to most arcade games of the time, the second part involved creating a library of recognizable games which used the names and likenesses of celebrities and athletes, such as Pat Riley Basketball , Arnold Palmer Tournament Golf , James 'Buster' Douglas Knockout Boxing , Joe Montana Football , Tommy Lasorda Baseball , Mario Lemieux Hockey , and Michael Jackson's Moonwalker . Nonetheless, Sega struggled to overcome Nintendo's presence in consumers' homes. Tasked by Nakayama to sell one million units within

2080-676: A version was operated in Brazil starting in 1995. Another phone-based system, the Mega Anser, turned the Japanese Mega Drive into an online banking terminal. In 1994, Sega started the Sega Channel , a game distribution system using cable television services Time Warner Cable and TCI . Using a special peripheral, Genesis players could download a game from a library of fifty each month and demos for upcoming releases. Games were downloaded to internal memory and deleted when

2184-512: A well-regarded soundtrack. ASCII Entertainment reported in early 1993 that Genesis had 250 games versus 75 for the SNES, but limited shelf space meant that stores typically offered 100 Genesis and 50 SNES games. The NES was still the leader, with 300 games and 100 on shelves. Sega's advertising positioned the Genesis as the cooler console, and coined the term blast processing , an obscure and unused graphics programming method, to suggest that its processing capabilities were far greater than those of

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2288-480: Is a 16/32-bit Motorola 68000 CPU clocked at 7.6 MHz . An 8-bit Zilog Z80 processor controls the sound hardware and provides backward compatibility with the Master System. The Genesis has 64 KB of RAM , 64 KB of video RAM and 8 KB of audio RAM. It can display up to 61 colors at once from a palette of 512. The games are in ROM cartridge format and inserted in the top. The Genesis produces sound using

2392-611: The Atari 2600 , and had far fewer games, it was unsuccessful despite a loyal following. By the mid-1980s, Bally again had a strong balance sheet and began buying other businesses, including the Six Flags amusement park chain in 1982, the Health and Tennis Corporation of America (which became Bally Total Fitness ) in 1983, and Scientific Games, a lottery terminal company, in 1986. That year, they also purchased several casinos, including

2496-789: The Horseshoe Las Vegas following a renovation. Bally's Corporation reached a 10-year naming rights agreement with Sinclair Broadcast Group to rebrand the Fox Sports Network group of regional sports networks , which Sinclair had recently acquired, as Bally Sports , beginning in 2021. Former subsidiary Bally Wulff remains a gaming and vending equipment manufacturer in Germany, with additional operations in Spain. French gambling equipment distributor Bally France and Japanese arcade distributor Bally Pond also still use

2600-518: The PC , Sega 32X , and 3DO . According to Digital Pictures founder Tom Zito, "You know, I sold 50,000 units of Night Trap a week after those hearings." Although experiencing increased sales, Sega decided to recall Night Trap and re-release it with revisions in 1994 due to the congressional hearings. After the close of these hearings, video game manufacturers came together to establish the rating system that Lieberman had called for. Initially, Sega proposed

2704-491: The Sega Saturn . In the early 1980s, Sega Enterprises, Inc. – then a subsidiary of Gulf+Western – was one of the top five arcade game manufacturers active in the United States, as company revenues surpassed $ 200 million between July 1981 and June 1982. A downturn in the arcade business starting in 1982 seriously hurt the company, leading Gulf+Western to sell its North American arcade manufacturing organization and

2808-549: The United Kingdom , with former Sega of Europe development director Mike Brogan noting that " Night Trap got Sega an awful lot of publicity ... it was also cited in UK Parliament for being classified as '15' due to its use of real actors." This came at a time when Sega was capitalizing on its image as an edgy company with attitude, and this only reinforced that image. By far the year's most controversial game

2912-643: The United States District Court for the Northern District of California , on charges of trademark infringement, unfair competition , and copyright infringement. In response, Accolade filed a counterclaim for falsifying the source of its games by displaying the Sega trademark when the game was powered up. Although the district court initially ruled for Sega and issued an injunction preventing Accolade from continuing to reverse engineer

3016-610: The Winter Consumer Electronics Show in January 1991, where Sega showed the new Genesis III and demonstrated it screening and rejecting an Ishido game cartridge. With more games planned for the following year, Accolade successfully identified the TMSS file. It later added this file to the games HardBall! , Star Control , Mike Ditka Power Football , and Turrican . In response to the creation of these unlicensed games, Sega filed suit against Accolade in

3120-451: The 4 Way Play and Team Player. Codemasters also developed the J-Cart system, providing two extra ports on the cartridge itself, although the technology came late in the console's life and is only featured on a few games. Sega planned to release a steering wheel peripheral in 1994, and the Genesis version of Virtua Racing was advertised as "steering wheel compatible", but the peripheral

3224-557: The Genesis, Accolade appealed the verdict to the United States Court of Appeals for the Ninth Circuit . As a result of the appeal, the Ninth Circuit overturned the district court's verdict and ruled that Accolade's decompilation of the Sega software constituted fair use. The court's written opinion followed on October 20, 1992, and noted that the use of the software was non-exploitative, although commercial. Further,

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3328-559: The Hedgehog , Sonic the Hedgehog 2 and Disney's Aladdin . Sega Enterprises focused on developing action games , while Sega of America was tasked with developing sports games . A large part of the appeal of the Genesis library was the arcade -based experience of its games, as well as more difficult entries such as Ecco the Dolphin , and sports games such as Joe Montana Football . Compared to its competition, Sega advertised to an older audience by hosting more mature games, including

3432-470: The Hedgehog 3 and Sonic & Knuckles sold a combined 4 million copies worldwide. After the release of the Genesis in 1989, video game publisher Accolade began exploring options to release some of their PC games on the console. At the time, Sega had a licensing deal in place for third-party developers that increased the costs to the developer. According to Accolade co-founder Alan Miller , "One pays them between $ 10 and $ 15 per cartridge on top of

3536-619: The Mark III for release in North America as the Master System. This was followed by a European release the next year. Although the Master System was a success in Europe, and later in Brazil, it failed to ignite significant interest in the Japanese or North American markets, which, by the mid-to-late 1980s, were both dominated by Nintendo. With Sega continuing to have difficulty penetrating the home market, Sega's console R&D team, led by Masami Ishikawa and supervised by Hideki Sato, began work on

3640-516: The Mega Drive in Japan on October 29, 1988, though the launch was overshadowed by Nintendo's release of Super Mario Bros. 3 a week earlier. Positive coverage from magazines Famitsu and Beep! helped to establish a following. Within two days of release, the console's initial production run sold out. However, Sega only managed to ship 400,000 units in the first year. In order to increase sales, Sega released various peripherals and games, including an online banking system and answering machine called

3744-567: The Mega Drive to all ages, unlike the Famicom, which was aimed primarily at children. According to Sato, the Japanese design for the Mega Drive was based on the appearance of an audio player, with "16-bit" embossed in a golden metallic veneer to create an impression of power. The console was announced in the June 1988 issue of the Japanese gaming magazine Beep! as the Mark V, but Sega management wanted

3848-626: The Mega Drive's launch and marketing in Australia, as it had done before with the Master System. In Brazil, the Mega Drive was released by Tectoy in 1990, only a year after the Brazilian release of the Master System. Tectoy produced games exclusively for the Brazilian market and brought the Sega Meganet online service there in 1995. Samsung handled sales and distribution in Korea , where it

3952-557: The Model 1 revisions and will work with the Model 2 revisions, however the shell blocks the power and AC ports of the Model 2 revision, meaning that the converter must have its shell modified or by using a pass-through adaptor. A second model known as the Master System Converter II was released only in Europe for use with the Mega Drive II, which works with other region Genesis consoles and revisions but lacks

4056-657: The November/December timeframe". Nakayama's decision to focus on the Saturn, based on the systems' relative performance in Japan, has been cited as the major contributing factor in this miscalculation. By contrast, Nintendo concentrated on the 16-bit home console market, as well as its successful handheld , the Game Boy , and took in 42% of the video game market dollar share without launching a 32-bit console. Following tensions with Sega Enterprises, Ltd. over its focus on

4160-632: The SNES to outsell the Genesis from 1995 through 1997. According to a 2004 study of NPD sales data , the Genesis maintained its lead over the Super NES in the American 16-bit console market. However, according to a 2014 Wedbush Securities report based on revised NPD sales data, the SNES outsold the Sega Genesis in the U.S. market by 1.5 million units. To compete with Nintendo, Sega was more open to new types of games, but still tightly controlled

4264-416: The SNES. A Sony focus group found that teenage boys would not admit to owning an SNES rather than a Genesis. With the Genesis often outselling the SNES at a ratio of 2:1, Nintendo and Sega focused heavily on impression management of the market, even going to the point of deception; Nintendo claimed it had sold more consoles in 1991 than it actually had, and forecasted it would sell 6 million consoles by

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4368-457: The Saturn, Kalinske, who oversaw the rise of the Genesis in 1991, lost interest in the business and resigned in mid-1996. Sega sold 30.75 million Genesis units worldwide. However, some sources claim that the console sold 40 million units during its lengthly lifespan. Of these, 3.58 million were sold in Japan, and sales in Europe and the U.S. are roughly estimated at 8 million and 18–18.5 million as of June 1997 (at which time Sega

4472-557: The Sega Mega Anser. Nevertheless, the Mega Drive was unable to overtake the venerable Famicom and remained a distant third in Japan behind Nintendo's Super Famicom and NEC's PC Engine throughout the 16-bit era. Sega announced a North American release date for the system on January 9, 1989. At the time, Sega did not possess a North American sales and marketing organization and was distributing its Master System through Tonka . Dissatisfied with Tonka's performance, Sega looked for

4576-765: The Sega Mega Mouse features three buttons and is only compatible with a few games, such as Eye of the Beholder . A foam-covered bat called the BatterUP and the TeeVGolf golf club were released for both the Genesis and SNES. In November 1993, Sega released the Sega Activator, an octagonal device that lies flat on the floor and was designed to translate the player's physical movements into game inputs. It

4680-475: The ability to use Master System cards. Both the original Power Base Converter and the Master System Converter II do not work with the Nomad or the Genesis 3. Other peripherals were released to add functionality. The Menacer is a wireless infrared light gun used with compatible games. Other third parties created light gun peripherals, such as American Laser Games and Konami . Released for art creation software,

4784-425: The address of Bally's Atlantic City. In 1999, Park Place bought Caesars World , and in 2003 changed its name to Caesars Entertainment. It was acquired in 2005 by Harrah's Entertainment , which took the name Caesars Entertainment Corp in 2010, and was eventually acquired in 2020 by Eldorado Resorts to become the current Caesars Entertainment . Many casinos and businesses worldwide have used the Bally name and logo in

4888-549: The approval process for third-party games and charged high prices for cartridge manufacturing. The American publisher Electronic Arts (EA) sought a better deal, but met resistance from Sega. They decided to reverse-engineer the Genesis, using a clean-room method similar to the method Phoenix Technologies had used to reverse-engineer the IBM Personal Computer BIOS around 1984. The process began in 1989, led by Steve Hayes and Jim Nitchals. They created

4992-940: The arcade game, but the Genesis version allowed players to bypass censorship, helping make it more popular. In 1997, Sega of America claimed the Genesis had a software attach rate of 16 games sold per console, double that of the SNES. 16-bit Too Many Requests If you report this error to the Wikimedia System Administrators, please include the details below. Request from 172.68.168.133 via cp1102 cp1102, Varnish XID 548713330 Upstream caches: cp1102 int Error: 429, Too Many Requests at Thu, 28 Nov 2024 05:40:25 GMT Bally Manufacturing Its brand name, and mid-20th century pinball and slot machine logo, are still used by several businesses with various acquired trademark rights, most notably slot machine maker Bally Technologies and casino operator Bally's Corporation . The Bally Manufacturing Corporation

5096-554: The company increased the order by 10,000 units when advanced orders had exceeded expectations, and another 10,000 units was later added following the console's success at the ECES event. The projected number of units to be sold between September and December 1990 had eventually increased to 40,000 units in the United Kingdom alone. Other companies assisted in distributing the console to various countries worldwide. Ozisoft handled

5200-820: The company was temporarily unable to attain a permanent license for the completed casino. During this period, company head William T. O'Donnell was forced to resign because of alleged links to organized crime, which he strenuously denied. When questioned by the Moffitt Royal Commission in New South Wales, Australia, during an investigation of criminal activities between the US and Australia, O'Donnell admitted that Genovese Mafia boss Gerardo Catena once owned shares in Bally, but claimed to have bought him out. He also denied knowing Chicago mobster Joseph Dan Testa, even though Australian police described Testa "as

5304-429: The console leader since 1985. The Genesis outsold the SNES for four consecutive Christmas seasons due to its two-year lead, lower price point, and larger game library compared to the SNES at its release. Sega had ten games for every game on SNES, and while the SNES had an exclusive version of Final Fight , one of Sega's internal development teams created Streets of Rage , which had bigger levels, tougher enemies, and

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5408-537: The console through its own Sega of America subsidiary, which executed a limited launch on August 14, 1989, in New York City and Los Angeles . The Genesis was released in the rest of North America later that year. The European version of the Mega Drive was released in September 1990, at a price of £ 189.99 , i.e. $ 337 (equivalent to $ 732 in 2023). The release was handled by Virgin Mastertronic , which

5512-635: The console was powered off. The Sega Channel reached 250,000 subscribers at its peak and ran until July 31, 1998, well past the release of the Sega Saturn. In an effort to compete with Sega, third-party developer Catapult Entertainment created the XBAND , a peripheral which allowed Genesis players to engage in online competitive gaming. Using telephone services to share data, XBAND was initially offered in five U.S. cities in November 1994. The following year,

5616-451: The console would run the game, and would briefly display the message: " Produced by or under license from Sega Enterprises, Ltd. " This system had a twofold effect: it added extra protection against unlicensed developers and software piracy and forced the Sega trademark to display when the game was powered up, making a lawsuit for trademark infringement possible if unlicensed software were to be developed. Accolade learned of this development at

5720-412: The core of the nascent gaming industry. After manufacturing munitions and airplane parts during World War II , Bally Manufacturing Corporation continued producing innovations in flipperless pinball machines, bingo machines, payout machines and console slot machines through the late 1950s. They also designed and manufactured vending machines and established a coffee vending service. Additionally, they made

5824-465: The court found that the trademark infringement, being required by the TMSS for a Genesis game to run on the system, had been inadvertently triggered by a fair use act and was the fault of Sega for having caused false labeling. Ultimately, Sega and Accolade settled the case on April 30, 1993. As a part of this settlement, Accolade became an official licensee of Sega, and later developed and released Barkley Shut Up and Jam! while under license. The terms of

5928-601: The design of buttons on arcade fighting games such as Street Fighter II . Sega also released a wireless revision of the six-button controller, the Remote Arcade Pad. The system is backward compatible with the Master System. The first peripheral is the Power Base Converter (Mega Adaptor in Japan and Master System Converter in Europe), which allows Master System games to be played. It is designed for

6032-447: The end of 1992, while its actual U.S. install base at the end of 1992 was only just more than 4 million units. Due to these tactics, it was difficult to ascertain a clear leader in market share for several years at a time, with Nintendo's dollar share of the U.S. 16-bit market dipping down from 60% at the end of 1992 to 37% at the end of 1993, Sega claiming 55% of all 16-bit hardware sales during 1994, and Donkey Kong Country helping

6136-403: The family-friendly GA rating to the more mature rating of MA-13, and the adults-only rating of MA-17. With the rating system in place, Sega released its version of Mortal Kombat , appearing to have removed all the blood and sweat effects and toning down the finishing moves even more than in the SNES version. However, all the arcade's blood and uncensored finishing moves could be enabled by entering

6240-457: The faster drawing speed of the Genesis made it more suitable for sport games than the SNES, and credits EA's success on the Genesis for helping catapult the EA Sports brand. Another third-party blockbuster for the system was the port of Mortal Kombat . Although the arcade game was released on the SNES and Genesis simultaneously, the two ports were not identical. The SNES version looked closer to

6344-562: The first electromechanical slot machine, Money Honey . It became a publicly traded company , and in 1969 acquired Midway Manufacturing , an amusement game company from Schiller Park, Illinois . The company expanded internationally in 1974 when it acquired German company Guenter Wulff-Apparatebau, which was renamed Bally Wulff. In the late 1970s, Bally entered the casino ownership business when New Jersey legalized gambling in Atlantic City . The effort moved forward even though

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6448-566: The first year, Katz and Sega of America sold only 500,000. At the Winter Consumer Electronics Show (Winter CES) in January 1990, the Sega Genesis demonstrated a strong line-up of games which received a positive reception for approaching arcade-quality graphics and gameplay as well as for providing non-arcade experiences such as Phantasy Star II . In mid-1990, Nakayama hired Tom Kalinske to replace Katz as CEO of Sega of America. Although Kalinske knew little about

6552-486: The late 1970s, Bally/Midway also made an entry into the growing home video-game market with the Bally Professional Arcade . It had advanced features for the time, including 256 colors and the ability to play 4-voice music. It shipped with a cartridge that let users do a limited amount of BASIC programming and save their programs on cassette tape. However, because it cost more than its main competitor,

6656-409: The licensing rights for its arcade games to Bally Manufacturing . The company retained Sega's North American R&D operation, as well as its Japanese subsidiary, Sega Enterprises, Ltd. With its arcade business in decline, Sega Enterprises, Ltd. president Hayao Nakayama advocated that the company leverage its hardware expertise to move into the home console market in Japan, which was in its infancy at

6760-541: The licensing, including whether or not any special arrangements or discounts were made to Accolade, were not released to the public. The financial terms of the settlement were also not disclosed, although both companies agreed to pay their own legal costs. In 1993, the American media began to focus on the mature content of certain video games. Games such as Night Trap for the Sega CD , an add-on , received unprecedented scrutiny. Issues about Night Trap were brought up in

6864-464: The marketplace and once again turned to Sega's strengths in the arcade industry to adapt the successful Sega System 16 arcade board into architecture for a home console. The decision to use a Motorola 68000 as the system's main CPU was made late in development, while a Zilog Z80 was used as a secondary CPU to handle the sound due to fears that the load to the main CPU would be too great if it handled both

6968-477: The maze of ownership, division spin-offs and licensing agreements. Williams, after acquiring the Bally/Midway amusement games unit, continued to use the Bally name for pinball games until Williams's parent company WMS Industries ceased pinball production in 1999, having spun off the video game unit as Midway Games the previous year. WMS Industries has licensed companies to use the intellectual properties and

7072-399: The month. The first Genesis version of EA's John Madden Football arrived before the end of 1990, and became what Gordon called a " killer app ". Taking advantage of the licensing agreement, Gordon and EA's vice president of marketing services, Nancy Fong, created a visual identifier for EA's Genesis cartridges: a yellow tab molded into the casing. Sega held a company-wide contest to create

7176-475: The original MGM Grand Hotel and Casino on the Las Vegas Strip (subsequently rebranded Bally's Las Vegas and now the Horseshoe Las Vegas ); the MGM Grand in Reno (now Grand Sierra Resort ); and the Golden Nugget Atlantic City, rebranded Bally's Grand (most recently the Atlantic Club Casino Hotel ). The expansion quickly took its toll on the company's finances, and Bally was soon forced to sell off several divisions, including Six Flags in 1987, Bally/Midway, which

7280-432: 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." Critics praised Sonic as one of the greatest games yet made, and Genesis sales increased as customers who had been waiting for the release of the international version of Nintendo's Super Famicom, the Super Nintendo Entertainment System (SNES), decided to purchase

7384-424: The popularity of the Genesis in North America, and the bundle is credited with helping Sega gain 65% of the market share against Nintendo. Similarly, in Europe, Sega captured a 65% share of the European console market, where the Mega Drive maintained its lead over the SNES through 1994. Sonic the Hedgehog 2 set records for the fastest-selling game, selling 3.2 million copies worldwide within two weeks, and Sonic

7488-520: The rating system and put ratings on it. In response, Sega of America vice president Bill White showed a videotape of violent video games on the SNES and stressed the importance of rating video games. At the end of the hearing, Lieberman called for another hearing in February 1994 to check on progress toward a rating system for video game violence. As a result of the congressional hearings, Night Trap started to generate more sales and released ports to

7592-417: The real hardware manufacturing costs, so it about doubles the cost of goods to the independent publisher." To get around licensing, Accolade chose to seek an alternative way to bring their games to the Genesis. It did so by purchasing one in order to decompile the executable code of three Genesis games. Such information was used to program their new Genesis cartridges in a way that would allow them to disable

7696-572: The rest of the developers to let them build games. After a few months, EA began developing for the Genesis in earnest. The EA founder, Trip Hawkins , confronted Nakayama the day before the 1990 Consumer Electronics Show (CES), informing him that EA had the ability to run its own licensing program if Sega refused to meet its demands. Sega relented, and the next day EA's upcoming Genesis games were showcased at CES. EA signed what Hawkins described as "a very unusual and much more enlightened license agreement" with Sega in June 1990: "Among other things, we had

7800-509: The right to make as many titles as we wanted. We could approve our own titles ... the royalty rates were a lot more reasonable. We also had more direct control over manufacturing." After the deal was in place, EA chief creative officer Bing Gordon learned that "we hadn't figured out all the workarounds" and "Sega still had the ability to lock us out ... It just would have been a public relations fiasco." EA released its first Genesis games, Populous and Budokan: The Martial Spirit , within

7904-471: The rights to remanufacture existing Bally and Williams pinball machines. Since 2014, the license has been held by Planetary Pinball Supply. Alliance Gaming, which bought Bally Gaming International in 1996, changed its name to Bally Technologies in 2006. It was purchased in 2014 by Scientific Games, which had also acquired WMS Industries the prior year. The company, which changed its name to Light & Wonder in 2022, continues to use Bally Technologies as

8008-431: The security lockouts on the Genesis that prevented unlicensed games from being played. This strategy was used successfully to bring Ishido: The Way of Stones to the Genesis in 1990. To do so, Accolade had copied Sega's copyrighted game code multiple times in order to reverse engineer the software of Sega's licensed Genesis games. As a result of piracy in some countries and unlicensed development issues, Sega incorporated

8112-481: The service was extended to the SNES, and Catapult teamed up with Blockbuster Video to market the service, but as interest in the service waned, it was discontinued in April 1997. The Genesis library was initially modest, but eventually grew to contain games to appeal to all types of players. The initial pack-in game was Altered Beast , which was replaced with Sonic the Hedgehog in 1991. Top sellers included Sonic

8216-550: The system in the United States and smaller numbers were sold by Samsung in South Korea. By the mid-2010s, licensed third-party Genesis rereleases were still being sold by AtGames in North America and Europe. Many games have been re-released in compilations or on online services such as the Nintendo Virtual Console , Xbox Live Arcade , PlayStation Network , and Steam . The Genesis was succeeded in 1994 by

8320-479: The third-worst video game controller ever made. Both EA and Sega released multitaps to allow more than two players to play at once. Initially, EA's version, the 4 Way Play, and Sega's adapter, the Team Player, only supported each publisher's games. In response to complaints, Sega said a new Team Player, which would work with all Genesis multitap games, would be released. Later games were created to work on both

8424-579: The time. Nakayama received permission to proceed with this project, leading to the release of Sega's first home video game system, the SG-1000 , in July 1983. While it had sold 160,000 units in Japan, far exceeding Sega's expectations, sales at stores were dominated by Nintendo 's Famicom which had been released the same day. Sega estimated that the Famicom outsold the SG-1000 by a 10-to-1 margin. The SG-1000

8528-447: The uncensored version of Mortal Kombat . The arcade hit Street Fighter II by Capcom was initially released on the SNES. As the Genesis continued to grow in popularity, Capcom released a Genesis version, Street Fighter II: Champion Edition , which sold more than a million copies. One of the biggest third-party companies to support the Genesis early on was Electronic Arts. Trip Hawkins , founder and then president of EA, believed

8632-502: The universal adoption of its system, but after objections by Nintendo and others, Sega took a role in forming a new one. This became the Entertainment Software Rating Board , an independent organization that received praise from Lieberman. With this new rating system in place for the 1994 holiday season, Nintendo decided its censorship policies were no longer needed, and the SNES port of Mortal Kombat II

8736-649: The video game console market generated between $ 200,000,000 (equivalent to $ 400,000,000 in 2023) and $ 250,000,000 (equivalent to $ 500,000,000 in 2023) in Russia, with Sega accounting for half of all console sales in the country. However, only about 15% of the sales were official Sega units distributed by Bitman, while the rest were unofficial counterfeit clones. For the North American market, former Atari Corporation Entertainment Electronics Division president and new Sega of America CEO Michael Katz instituted

8840-647: The video game industry, and the Genesis and several of its games attracted legal scrutiny on matters involving reverse engineering and video game violence . Controversy surrounding violent games such as Night Trap and Mortal Kombat led Sega to create the Videogame Rating Council , a predecessor to the Entertainment Software Rating Board . 30.75 million first-party Genesis units were sold worldwide. In addition, Tectoy sold an estimated 3 million licensed variants in Brazil, Majesco projected it would sell 1.5 million licensed variants of

8944-424: The video game market in 1995. Sega underestimated the continued popularity of the Genesis and did not have the inventory to meet demand. Sega captured 43% of the dollar share of the U.S. video game market and claimed to have sold more than two million Genesis units in 1995, while Genesis software such as Vectorman remained successful, but Kalinske estimated that "we could have sold another 300,000 Genesis systems in

9048-442: The video game market, he surrounded himself with industry-savvy advisors. A believer in the razor and blades model , he developed a four-point plan: cut the price of the console, create an American team to develop games targeted at the American market, expand the aggressive advertising campaigns, and replace the bundled game Altered Beast with a new game, Sonic the Hedgehog . The Japanese board of directors initially disapproved of

9152-499: The visuals and the audio. The 68000 chip was expensive and would have driven the retail price of the console up greatly, but Sega was able to negotiate with a distributor for a tenth of its price on an up-front volume order with the promise of more orders pending the console's future success. The appearance of the Mega Drive was designed by a team led by Mitsushige Shiraiwa that drew inspiration from audiophile equipment and automobiles. Shiraiwa said this more mature look helped to target

9256-466: Was Midway 's Mortal Kombat , ported to the Genesis and SNES by Acclaim Entertainment . In response to public outcry over the game's graphic violence, Nintendo decided to replace the blood in the game with "sweat" and the arcade's gruesome "fatalities" with less violent finishing moves. Sega took a different approach, instituting America's first video game ratings system, the Videogame Rating Council (VRC), for all its current systems. Ratings ranged from

9360-426: Was acquired by longtime pinball and video game rival Williams Electronics in 1988, and Aladdin's Castle chain of video arcades, in 1989; Aladdin's Castle was later sold to Namco in 1993 and became part of Namco Cybertainment. In 1990, Bally came under new management as its largest shareholder, Arthur Goldberg, was appointed chairman and began a restructuring process. To pay down debts, German subsidiary Bally Wulff

9464-440: Was cancelled. In its first foray into online gaming , Sega created Sega Meganet , which debuted in Japan on November 3, 1990. Operating through a cartridge and a peripheral called the "Mega Modem ", this allowed Mega Drive players to play a total of seventeen games online. A North American version, dubbed "Tele-Genesis", was announced at the Winter Consumer Electronics Show (Winter CES) in January 1990 but never released, though

9568-428: Was completed in January 1996, with Bally Total Fitness becoming a separate company. In June 1996, Bally Entertainment agreed to be acquired by Hilton Hotels Corporation . The sale was completed on December 18, 1996 for $ 3 billion ($ 2 billion in stock plus $ 1 billion in assumed debt). Two years later, Hilton's casino division, including the former Bally properties, was spun off as Park Place Entertainment , named for

9672-591: Was distributed by Samsung Electronics as the Super Gam*Boy and later the Super Aladdin Boy . Designed by an R&D team supervised by Hideki Sato and Masami Ishikawa, the Genesis was adapted from Sega's System 16 arcade board, centered on a Motorola 68000 processor as the CPU , a Zilog Z80 as a sound controller, and a video system supporting hardware sprites , tiles , and scrolling. It plays

9776-417: Was first shown at the January 1993 Consumer Electronics Show (CES), where it was demonstrated with Streets of Rage 2 . Several high-profile games, including Mortal Kombat and Street Fighter II: Special Champion Edition , were adapted to support the peripheral. The device was a commercial failure, due mainly to its inaccuracy and its high price point. IGN editor Craig Harris ranked the Sega Activator

9880-419: Was founded by Raymond Moloney on January 10, 1932, when Bally's original parent, Lion Manufacturing, established the company to make pinball games, taking its name from its first game, "Ballyhoo". The Chicago -based company quickly became a leading pinball maker. In the late 1930s, Moloney began making gambling equipment, and had great success developing and improving the mechanical slot machines that were

9984-517: Was its library of arcade game ports , the popularity of Sega's Sonic the Hedgehog series, several popular sports franchises, and aggressive youth marketing that positioned it as the cool console for adolescents. The 1991 North American release of the Super Nintendo Entertainment System triggered a fierce battle for market share in the United States and Europe known as the " console war ". This drew attention to

10088-562: Was later purchased by Sega in 1991 and became Sega of Europe. Games like Space Harrier II , Ghouls 'n Ghosts , Golden Axe , Super Thunder Blade , and The Revenge of Shinobi were available in stores at launch. The console was also bundled with Altered Beast . The Mega Drive and its first batch of games were shown at the 1990 European Computer Entertainment Show (ECES) in Earl's Court . Between July and August 1990, Virgin initially placed their order for 20,000 Mega Drive units. However,

10192-409: Was moved to Robinsonville in 1995 and became part of a joint venture with Lady Luck Gaming . In 1994, the company changed its name to Bally Entertainment, to reflect its focus on the casino business and the fact that it no longer had any manufacturing operations. It also announced that the health club business would be spun off to shareholders, to further narrow its focus on casinos. The spin-off

10296-517: Was named Super Gam*Boy and retained the Mega Drive logo alongside the Samsung name. It was later renamed Super Aladdin Boy. In India, Sega entered a distribution deal with Shaw Wallace in April 1994 in order to circumvent an 80% import tariff, with each unit selling for INR₹ 18,000. In Russia, Sega officially licensed the console to local distributor Forrus in 1994, replaced in 1996 by Bitman. That year,

10400-488: Was no longer manufacturing the system) respectively. In 1998, Sega licensed the Genesis to Majesco Entertainment to rerelease it in North America. Majesco began reselling millions of unsold cartridges at a budget price, together with 150,000 units of the second model of the Genesis. It released the Genesis 3, projecting to sell 1.5 million units of the console by the end of 1998. As of 2012, Tectoy had sold an estimated 3 million Genesis units. The main microprocessor

10504-516: Was quick to point out at the hearings that Night Trap had no such rating, saying to Senator Joe Lieberman : Furthermore, I can't let you sit here and buy this nonsense that this Sega Night Trap game was somehow only meant for adults. The fact of the matter is this is a copy of the packaging. There was no rating on this game at all when the game was introduced. Small children bought this at Toys "R" Us , and he knows that as well as I do. When they started getting heat about this game, then they adopted

10608-488: Was released uncensored. Sega released two add-ons to increase the Genesis capabilities: a CD peripheral, the Sega CD (Mega-CD outside North America and Brazil), and a 32-bit peripheral, the Sega 32X . Worldwide, Sega sold 2.24 million Sega CD units and 800,000 32X units. Following the launch of the next-generation 32-bit Sony PlayStation and Sega Saturn , sales of 16-bit hardware and software continued to account for 64% of

10712-536: Was replaced by the Sega Mark III within two years. In the meantime, Gulf+Western began to divest itself of its non-core businesses after the death of company founder Charles Bluhdorn , so Nakayama and former Sega CEO David Rosen arranged a management buyout of the Japanese subsidiary in 1984 with financial backing from CSK Corporation , a prominent Japanese software company. Nakayama was then installed as CEO of Sega Enterprises, Ltd. In 1986, Sega redesigned

10816-587: Was spun off into an independent company in 1991. Scientific Games, exercise equipment maker Life Fitness , and the Reno casino were sold in 1993. The slot machine manufacturing division was spun off as Bally Gaming International, ending the company's involvement in manufacturing. The company opened Bally's Saloon & Gambling Hall , a riverboat casino in Mhoon Landing, Mississippi in December 1993. It

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