History of Sega

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The history of Sega, a Japanese multinational video game and entertainment company, has roots tracing back to American Standard Games in 1940 and Service Games of Japan in the 1950s. It originated as Nihon Goraku Bussan, which became known as Sega Enterprises, Ltd. following the acquisition of Rosen Enterprises in 1965. Originally an importer of coin-operated arcade games to Japan and manufacturer of slot machines and jukeboxes, Sega began developing its own arcade games in 1966 with Periscope, which became a surprise success and led to more arcade machine development. In 1969, Gulf and Western Industries (then-owner of Paramount Pictures) bought Sega, which continued its arcade game business through the 1970s. In response to a downturn in the arcade-game market in the early 1980s, Sega began to develop video game consoles—starting with the SG-1000 and Master System—but struggled against competing products such as the Nintendo Entertainment System. Around the same time, Sega executives...

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