Eddie-Griffin
Banned
Before we go into the documentation context is needed. Many people know Sega ended up failing for various reasons, however before the Dreamcast was even launched Sega was already in the hole, and Sega was in no position to launch the Dreamcast itself until a influx of money from outside helped, along with partnerships, Sega was basically a zombie company or near one at that point before receiving that uplift. Before Jan 1996, Sega made a few flubs, they gutted the 32X early and were about to kill it off, yet still kept being stubborn about killing the Sega/MegaCD, the Saturn launch had it's own issues, however that would not be obvious yet especially for long-term consequences, their marketing strategies were mostly detrimental, they were basically doing the opposite of what they did with the Genesis, and they were not utilizing staff the same way with the Saturn as they utilized them with the Genesis. This applies everywhere btw, except Japan.
However, almost all the things people say Sega did in this era to cause their fall, that would also sabotage their last gamble (Dreamcast), as well as myths/rumors all were not happening yet in early 1996. the documentation below which I will show with breakdowns in chronological order (by month) will showcase that Sega at Jan 1996 (outside of Japan especially US) was actually not in any notable danger of anything, they were only just starting to flub Genesis in 1994 regarding support, which resulted in interest in the console dying compared to the extended life of the SNES. 1996 will show them further screwing that up for the last time, but at the start of the year there was no such belief that the Genesis would be a liability and it was thought it would be an entry level system for Saturn owners.
The Saturn also, at the start of 1996 was not far from PS sales in a few European countries and the US, The press that was iffy on the Saturn was a minority early in the year, as Segas announcements were anticipated at the start of 1996, there was no expectation of Sega "failing" even from Sega themselves, they hadn't started acting like they had the money of Sony or Nintendo's reserves, and were at worst acting like a slightly ahead of themselves market leader, in fact Sega was still the market leader in the US in jan 1996, with Sony right behind, so pretty much nothing that most people would say about the Saturn, or long-term consequences of earlier decisions, haven't happened yet, especially since the latter only came to prominence due to mistakes Sega made in 1996 enabling those consequences to fester, and quickly. Sega itself while having taken a few scratches, was still sitting in cash from peak genesis and some other areas like arcades.
I would like to put in context as well, that in the US the Saturn and the PSX both launched in late holiday sales period 1995, so we are only a few months from launch in Jan 1996, and this is important for context for the reports below. The documentation below aims to show that Segas downfall was primarily due to a cumulative number of Sega's actions done almost entirely just in 1996, and it's important also for context, that Sega's actual value in money was maybe in Jan 1996 only 2.5-3x more than the 3DO company value at it's peak, which needed help to launch their console in 1993 due to the costs involved. So keep this in mind when looking at documentation later in the year when Sega acts like they are high rollers like Sony when they actually don't have the cash, in some cases likely using credit and/or loans, or partnerships.
Now then let us begin. Articles will be in quotes to reduce clutter
JANUARY 1996
Already we start off the year with Sega in talks with Panasonic/Matsushita on creating a DVD related consumer device. Included is the mention of complex games DVD could provide, including better quality FMV and sounds. Of course, this never went anywhere and the money spend on exploration was pointless, in fact, Sega would drop out of the console market before they's even touch DVD for games, years after this.
Here we have Sega in Jan 1996 still the market leader in the US, with Nintendo pretty close behind, a fast approaching Sony, and a pre-desperation sale 3DO in the rear. This is going to change drastically throughout the year.
This is a summary of an issue regarding Sega firing/laying off staff who are slow to adopt or refuse to adopt some elements of modern computing in their lives. This is in japan and will end up having a long-term consequence for the company there later, as several of these staff could've been helpful in operations once Sega's initial success there starts rapidly declining.
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FEBUARY 1996
Lockheed Martin has formed Real-3D to carry on an expensive joint venture that was already on-gong over at Sega, which would result in the costly but impressive Model 3 Arcade board and games.
Ok, so things are starting to become clearer now about Sega's back end. Sega takes a $340 million loss due to issues and restructuring/shrinking of their European operations. Reducing the countries it deals with directly with middle-men for the others. They also mention unrelated separate losses in the millions. Sega is pivoting to focusing on "games" and SEGAWORLD. Which is interesting because Sega had always presented itself as always focusing on games so this messaging is quite interesting. There's also losses from the US involving inventory, and Sony is picking up steam WW over Sega. Also, Sega starts the Genesis blame game here which it uses as an excuse for losses throughout the year even though it's not the primary cause, or even half the cause, of most of the upcoming losses. But we'll get to that gaslighting strategy later.
Sega is partnering with IMAX to install theaters at two of Segas high-tech "amusement parks" in this report. It's a small snippet but it all adds up to produce the full picture. It will actually be foreshadowing stuff that's going to happen later so keep this in mind.
Now some people here will likely know what this internet product will become. To keep things in context though I won't actually name the device until an article does later on. But this is the first major look at Sega's "internet TV" plans for the Saturn, and as things get worse for Sega it becomes a "plan" that Sega hopes will raise adoption of the Saturn console. It still comes out this year, but keep this article in mind as right now Sega is announcing this product with no name, and it will become apparent later that they also have no plan. At this moment the device is actually in development, there is however NO SOFTWARE being prepared for it yet. This is despite the fact Sega is basically telling you that the whole point of this device outside browsing is to play games with it. More money down the drain, keep this in mind.
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MARCH 1996
So Sega along with Dreamworks, Spielberg, SKG, and MCA are in a partnership to open 100 entertainment centers in 4 years. Or at least that's what they planned to happen. But it doesn't work out that way.
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APRIL 1996
So here we have Sega cutting their relationship with a company that helped Sega get to be as big as they "were" with no replacement agency planned to help Sega market their products on TV. On first glance of this article, you may think Sega is playing the blame game, instead of focusing on issues caused by themselves, and on that note you would be right.
So the Sega Nomad is here. Game gear is still on sale btw and marketed. $200, expensive, and Sega is as the article states not doing much marketing for it yet because they don't want to overlap with their GG push. Of course even after GG continues to decline to it's death they still only marginally pick up the marketing. Not the smartest sales plan out there.
Also, I never liked how the carts stuck out like that.
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MAY 1996
So the announcement of VF3 coming to the Saturn is hilarious looking back at this, but we have here the mention of the then upcoming game "NIghts" and it coming with the Saturn Analog controller. However, Sega don't seem interested it including it with SATURNS for some reason. We also get the Net Link name drop for that internet device mentioned earlier still being invested in.
So a few things with this article. For one, Sega is not and never has been in any position to have a price cut war with Sony. Sega had at least 3-4 price cuts alone in 1996. 2nd, don't let these sales fool you that these two are close. Sega's sales in Japan is what's making these numbers "seem' even, and that's about to drop off with Sony picking up pretty much everywhere else.
We have a little but more detail on Netlink but not much. Notice that they still don't mention software for it. But there's the issue that seems to not phase Sega at all, that a person who actually wants their internet TV service, has to at minimum pay $50 more than what the original unsellable price of the Saturn was, which Sega than cut to be closer to PS, which also forced 3DO to cut from $400 to match PS, then not long after $50 below PS earlier this year. Not the price point of even modest adoption.
So Sega was supposed to come out in 1994 with the Saturn in the US which didn't happen, and therefore it was delayed until 1995. Apparently this delay which oddly matched the PlayStation US release date window, caused a 15% decline in profits. Sega lost near $40 million In their fiscal year ending in march. So clearly. the best thing to do at the time of losing money is to of course, cut the price, again, of your expensive top of the line consumer electronic product by $50 because.......
By now you're probably starting to realize, if you hadn't before, that Sega doesn't make any sense.
This is just a repeat of the last one, I just find it curious how Sega is blaming a "later release" on its losses, yet was touting victory when it was slightly ahead of PS in 1995, which released near the same time. Something doesn't add up Sega,
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JUNE 1996
So we are in June now, half-way through the year, and Sega is currently giving strong hints they aren't confident in the Saturn. They are already preparing computer games for PC due to the growth in the market, and the anticipation it will impact console sales (it won't).
Also notice the Nintendo director believing that if PC gaming continues to take off Nintendo may as well quit. Turns out he was wrong too. Already at this point the CD-rom is near standard on PCs and nothing was happening then, yet for some reason several companies, not just Nintendo and Sega, were thinking that console gaming would be dead or injured by 1998-1999. Nope. But Sega will act on the thing they haven't confirmed yet just the same.
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JULY 1996
So this is continuing from the last article from June, just one month before. Here is Sega agreeing to partner with Compaq to produce games for its Presario computers. As Compaq is focusing on more than just productivity with these devices, but also multimedia. What luck Sega was already pulling a 3DO and moving toward PC already. It can now waste more money on a nothing project.
So here we have Sega kicking Tom Kalinske and replacing him with Shoichiro, and making Bernie Solar the new VP in a restructuring shake up.
The middle section is baffling to me. "how desperate video game companies have become" no...it's just Sega. "Money is no object at the moment, the price will be paid down the road" ok.... which road? Sega has been down many roads, where's the profit at the end of the tunnel? Pointless being aggressive with no plan.
Also new division Sega Soft, to help Sega focus on "games" which I guess means Sega wasn't focusing on games before? But don't worry Three Dirty Dwarves will save the Saturn.
Btw, did you know Ultimate Mortal Kombat 3 is the first MK title on the Saturn?
This just goes over some of the stuff from the last article about Segas shakeup.
The difference is here we find out Hayao and David both resigned during the shakeup. There's also a focus on Sega struggling in the market place.
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AUGUST 1996
So Sega seems to be wanting to be more like Nintendo for some reason, despite it's nearest competitor Sony gaining consumers based on broad demographics and genre/themes. They do later somewhat backtrack on this, but they did still limit violence to some extent. You won't be seeing GTA on the Saturn that's for sure. It may not seem like much at first glance, but this just adds more problems to the pile in dealing with Segas market performance.
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SEPTEMBER 1996
Presenting Sega City Pladium. get it? Play+Stadium=bankrup Pladium.
You'll notice Sega and the names of their partners involved with this venture are the same as a much earlier article. This is what that "entertainment plan" ended up becoming.
It's not a theme park, but it costs more than an arcade. 40 locations planned to be build across Canada, and it aims to create a "new market" with this...somehow. Also look, that Imax snippet from a previous article is involved with these centers as well. See? it's all coming together.
But the article brings up a question that' quite important: "But will it make money?" btw, the "Staff" are called "gamers" huh.. 5 to 7 years to roll out the other locations, wow that's a longer time table than they said in the earlier article, and it won't happen anyway.
Btw, the pladium is pay to play. Games range from $1.60-$4.95 Canadian. Eh?
So we finally get an info dump on Netlink, a date, and a $200 price. Of course you need a Saturn too. You can get a full package, which includes a keyboard so you don't have to use the screen, for $50 more than the original price of the Saturn at $450. Or you can pay $400 if you can't get the pack, or $200 if you already have a Saturn, but in both these cases you'll likely have to spend extra money on a compatible keyboard.
Of course, they still aren't mentioning the other fee(s) yet but that's another story.
Also notice the mention of Sony and Sega being in a price war Sega can't afford to be in. At this point its obvious it's not giving the sales increases Sega hoped for either, so at this point they seem to just be lost. Notice "doesn't yet have MP games" or "Sega is doing everything to make Saturn more attractive" are they? are they really?
So this seems to be more of a hit piece. Sega is betting on Netlink for Saturn adoption, and notice in no article yet has a game been mentioned and it's launching in October. It then makes a reasonable observation: would gamers, and if they are kids their parents, rather buy a $200 Netlink which also includes other fees and likely a keyboard as well, or with that same money, by 4 games for their Playstations? Heck that applies to the Saturn too. $200 will get you a good investment toward an N64 as well.
SEGAWORLD THEME PARK! Just opened in London. 7 floors of fun, 10am-midnight. A "futuristic park" was built and it took two years to create, with money. E45 million is what it took to open this park. Surely it will be a massive hit and give 10x ROI....oh....
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OCTOBER 1996
Sydney Harald Oct 1st 1996
Sega making a deal with a third party to distribute arcades in Australasia. In 1996. Interesting timing Sega.
So, some people here likely have seen the name "Pico" before, but before you jump to conclusions that's not what THIS is. This is a edutainment BUS. Literally a bus, and it has stuff in it. This is not a consumer device.
Sega bus for the kids. 100% ROI.*
*no
This is just a sad article. This is clearly someone struggling having delusions. Who cares about the Nintendo 64 when Segas "defiantly" sticking to it's guns, the ones that barely function and keep backfiring. Clearly this is the strategy that will put Sega right at number one. lol.
The fact they brought the "it's too powerful" excuse for the software issue is amazing. Yet they had no issues on the PSX, hmmmmmmm.
"The games flow better and there's way more color" this is barely anything, what is this?
So Wardope said that "I thought Sonic was fast on the Genesis, but the gameplay on the Saturn is incredibly fast" which indicate he PLAYED a Saturn game, but WHICH Sonic game is he talking about? Or is he just talking about an imaginary game? Notice it doesn't give a name. None of the games on the Saturn are faster than the Genesis Sonic games, the closest you'll get are those same Genesis games in the Sonic Jam collection, including Sonic Xtreme.
I also like the blunt lying about the Saturn with Netlink being able to do EVERYTHING (???) A multi-thousand dollar PC can do. Wut? None of this addresses the problems Sega needs to resolve to be competitive, or at least avoid falling down a canyon. Not one bit.
Sega is cutting game prices, but the fact Sega's retail partners weren't even made aware of the price cuts will of course, piss them the hell off, but the article is being nice about it. I mean a Sega rep even said "should be available now" I mean you can't make this stuff up.
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NOVEMBER 1996
We are finally entering the Holiday season and the last two months of the year. Sega is struggling, and they need to save money and create some kind of safety net.
So fuck that, let's advertise this Pico console thing, and have the ad for it bee place right above one talking about curing foot fungus, just says "buy me" to the consumer. I wonder what the "free offer" is if you call.
Finally the Netlink that's going to save Sega! OMG! Is out and is shipping yes SEGA IS SVAED! You heard it here first. No wait, no, not really.
.....$8 a month for 5 hours of usage. A month. 5 hours. $20 for unlimited.
They acknowledge you'll have to buy a keyboard if you don't want to use the controller and on screen pad, However, you need a $20 doohickey, so if you just brought the keyboard Sega says go screw yourself, buy our thingy or it won't work. Unless you buy the full package which includes a Sega keyboard, then you'll pay $450.
You still need to pay the other fees though.
Basically around $500, that will get you A Saturn, Netlink, and one game. Or you can pay $250 assuming you are buying a keyboard, if you already own a Saturn.
$500 you could get a PSX or an N64 with games.
$250 you can get a PSX or an N64 with a game.
Or you can pay $250-$500 to "surf" the net on a Saturn worse than a PC with no game, or one game if you pay the $500.
Man I am stumped which of these the average consumer will choose.
Sega has a new machine in the works. A few reports about that going around then. I mean things are going so well I'm not surprised they would be looking for a quick replacement. Always replace the things that sell, that way you lose money, and that leads to a successful company.
Wait...
So...
Looks like that Netlink may have a few issues, and not be the savior that it was supposed to be. So, all the money went to what exactly?
The article starts off taking a jab at Sega being in third place, though that happened less than a month after the N64 came out. Sega's panic on getting the Netlink out to save the Saturn has backfired, and not just because of these issues, it was also incredibly overpriced.
I like this quote "Netlinks best shot of salvation is online gaming" then says "Sometime in the first three months of NEXT YEAR, Sega promises Netlink owners will be able to play each other in several games" Sega, all this time to ship this shit and you don't have any damn games yet? That was the original point of the damn Netlink when you announced it before coming up with a name?
"it's the only company of the big three that's strictly a video game company" not according to Sega the past..year. Maybe that's what they should have been the whole time.
So the "not a 3D machine" was making rounds but it was especially picking up at this point because people were upset. I do disagree with the excuse above the 2D console one though, I don't think there's a single Japanese game exclusive to Japan that would have helped the Saturn if brought over that wasn't already released in the US. I looked at the best selling titles, I don't see one.
Clearly these people never heard of Netlink, which will save Sega. But the point of this article is to show that Segas image was more than just a little bruised by this point.
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DECEMBER 1996
We are now in December, the final stretch! Let's see how...oh.....
So this is a bit self-explanatory. The fact Sega months ahead of time knows their fiscal year is doomed is pretty telling. Sega has really fallen low during just this last year haven't they? Crazy how just in January it seemed like they were on the cusp of charging ahead. Interesting.
So Sonic X-treme is recalled on the even of its launch, and Sega is struggling, but it's thanks to....*checks notes*......Nights? That a knockout blow wasn't delivered to Sega. According to this guy anyway. Apparently it's a substitute for Mario 64. Peter-Pan flying game lol.
I mean, Nintendo invested in call center help lines for dumb people that can't press the A button too, so I can't really go too hard on Sega for this, but the amount of investment seems a bit high, and I don't believe Sony went this far either, maybe they did, but something tells me this is excessive and costly. I guess for those playing Nights this might be useful since people even today who first play that game on a used Saturn or emulator have no clue what they are doing.
So, $253 million loss for sega.
Just good ol' $253 million loss, nothing to see here. Everything is fine. Slashing of a forecast of Y27Billion to Y11Billion is perfectly normal and happens all the time.
it's only a "special" loss, nothing serious, but I'd reckon Sega would want to avoid more "special" loses in the future, but that's just my opinion. Clearly, they know what they re doing and have everything under the control.
Say, remember that Sega/Dreamworks/MCA Gameworks thing? Well now they are trying to lease space at the liberty center in New York. Clearly a worthwhile investment, and I believe Gameworks will be around for a long time with a high ROI.
No it won't.
Daily Advertiser Dec 29th 1996
Another $215 million dollar loss at Sega, US division. Which they blame on inventory of the Genesis they didn't market and support correctly totaling $61 million.
Now, I'm not a Math Professor Teaching Calculus 4 at some $80,000 a year college. But I just feel that maybe Sega is doing just a tiny bit of bullshit here, just a tiny bit, with the blame game they are playing.
They also cut their group net profit by $46 million.
These are all signs of a company that is run well and on the cusp of a comeback any moment now. Especially with Netlink still not having any games or a price cut, which will cause consumers to buy more Saturns. And they needed to kill the Genesis, having a safety net is something that bad companies would do, while we are at it, the arcade division is wobbly but that's ok, it's all apart of the massive growth Sega is imagining it's having. If we just open some more SEGWAROLDS parks all the problems will go away.
Well Netlink didn't work out, but will will save the Saturn is clearly, clearly, having it function as a video phone. yes, an (expensive) adapter and mic/camera + service will allow users to video call on the phone. This investment had a clear path to ROI, it doesn't, and will surely end up being very profitable. Sega doesn't panic and react, they come up with unique ideas that always succeed at not generating profit. That's the Sega difference.
Wait...
End of PT1
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However, almost all the things people say Sega did in this era to cause their fall, that would also sabotage their last gamble (Dreamcast), as well as myths/rumors all were not happening yet in early 1996. the documentation below which I will show with breakdowns in chronological order (by month) will showcase that Sega at Jan 1996 (outside of Japan especially US) was actually not in any notable danger of anything, they were only just starting to flub Genesis in 1994 regarding support, which resulted in interest in the console dying compared to the extended life of the SNES. 1996 will show them further screwing that up for the last time, but at the start of the year there was no such belief that the Genesis would be a liability and it was thought it would be an entry level system for Saturn owners.
The Saturn also, at the start of 1996 was not far from PS sales in a few European countries and the US, The press that was iffy on the Saturn was a minority early in the year, as Segas announcements were anticipated at the start of 1996, there was no expectation of Sega "failing" even from Sega themselves, they hadn't started acting like they had the money of Sony or Nintendo's reserves, and were at worst acting like a slightly ahead of themselves market leader, in fact Sega was still the market leader in the US in jan 1996, with Sony right behind, so pretty much nothing that most people would say about the Saturn, or long-term consequences of earlier decisions, haven't happened yet, especially since the latter only came to prominence due to mistakes Sega made in 1996 enabling those consequences to fester, and quickly. Sega itself while having taken a few scratches, was still sitting in cash from peak genesis and some other areas like arcades.
I would like to put in context as well, that in the US the Saturn and the PSX both launched in late holiday sales period 1995, so we are only a few months from launch in Jan 1996, and this is important for context for the reports below. The documentation below aims to show that Segas downfall was primarily due to a cumulative number of Sega's actions done almost entirely just in 1996, and it's important also for context, that Sega's actual value in money was maybe in Jan 1996 only 2.5-3x more than the 3DO company value at it's peak, which needed help to launch their console in 1993 due to the costs involved. So keep this in mind when looking at documentation later in the year when Sega acts like they are high rollers like Sony when they actually don't have the cash, in some cases likely using credit and/or loans, or partnerships.
Now then let us begin. Articles will be in quotes to reduce clutter
JANUARY 1996
Miami Herald Jan 18 1996.
Already we start off the year with Sega in talks with Panasonic/Matsushita on creating a DVD related consumer device. Included is the mention of complex games DVD could provide, including better quality FMV and sounds. Of course, this never went anywhere and the money spend on exploration was pointless, in fact, Sega would drop out of the console market before they's even touch DVD for games, years after this.
Oakland Tribute Jan 14th 1996
Here we have Sega in Jan 1996 still the market leader in the US, with Nintendo pretty close behind, a fast approaching Sony, and a pre-desperation sale 3DO in the rear. This is going to change drastically throughout the year.
Elpaso Herald Jan 2 1996)
This is a summary of an issue regarding Sega firing/laying off staff who are slow to adopt or refuse to adopt some elements of modern computing in their lives. This is in japan and will end up having a long-term consequence for the company there later, as several of these staff could've been helpful in operations once Sega's initial success there starts rapidly declining.
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FEBUARY 1996
Orlando Sentinel Feb 21
Lockheed Martin has formed Real-3D to carry on an expensive joint venture that was already on-gong over at Sega, which would result in the costly but impressive Model 3 Arcade board and games.
National Post Feb 28th 1996
Ok, so things are starting to become clearer now about Sega's back end. Sega takes a $340 million loss due to issues and restructuring/shrinking of their European operations. Reducing the countries it deals with directly with middle-men for the others. They also mention unrelated separate losses in the millions. Sega is pivoting to focusing on "games" and SEGAWORLD. Which is interesting because Sega had always presented itself as always focusing on games so this messaging is quite interesting. There's also losses from the US involving inventory, and Sony is picking up steam WW over Sega. Also, Sega starts the Genesis blame game here which it uses as an excuse for losses throughout the year even though it's not the primary cause, or even half the cause, of most of the upcoming losses. But we'll get to that gaslighting strategy later.
National Post Feb 7th 1996
Sega is partnering with IMAX to install theaters at two of Segas high-tech "amusement parks" in this report. It's a small snippet but it all adds up to produce the full picture. It will actually be foreshadowing stuff that's going to happen later so keep this in mind.
San Francisco Examiner Feb 16th
Now some people here will likely know what this internet product will become. To keep things in context though I won't actually name the device until an article does later on. But this is the first major look at Sega's "internet TV" plans for the Saturn, and as things get worse for Sega it becomes a "plan" that Sega hopes will raise adoption of the Saturn console. It still comes out this year, but keep this article in mind as right now Sega is announcing this product with no name, and it will become apparent later that they also have no plan. At this moment the device is actually in development, there is however NO SOFTWARE being prepared for it yet. This is despite the fact Sega is basically telling you that the whole point of this device outside browsing is to play games with it. More money down the drain, keep this in mind.
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MARCH 1996
Daily news March 4th 1996.
So Sega along with Dreamworks, Spielberg, SKG, and MCA are in a partnership to open 100 entertainment centers in 4 years. Or at least that's what they planned to happen. But it doesn't work out that way.
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APRIL 1996
San Francisco Examiner April 18th 1996
So here we have Sega cutting their relationship with a company that helped Sega get to be as big as they "were" with no replacement agency planned to help Sega market their products on TV. On first glance of this article, you may think Sega is playing the blame game, instead of focusing on issues caused by themselves, and on that note you would be right.
Province April 26th 1996
So the Sega Nomad is here. Game gear is still on sale btw and marketed. $200, expensive, and Sega is as the article states not doing much marketing for it yet because they don't want to overlap with their GG push. Of course even after GG continues to decline to it's death they still only marginally pick up the marketing. Not the smartest sales plan out there.
Also, I never liked how the carts stuck out like that.
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MAY 1996
News Tribune May 18th 1996
So the announcement of VF3 coming to the Saturn is hilarious looking back at this, but we have here the mention of the then upcoming game "NIghts" and it coming with the Saturn Analog controller. However, Sega don't seem interested it including it with SATURNS for some reason. We also get the Net Link name drop for that internet device mentioned earlier still being invested in.
The Missoulian May 20th 1996
So a few things with this article. For one, Sega is not and never has been in any position to have a price cut war with Sony. Sega had at least 3-4 price cuts alone in 1996. 2nd, don't let these sales fool you that these two are close. Sega's sales in Japan is what's making these numbers "seem' even, and that's about to drop off with Sony picking up pretty much everywhere else.
We have a little but more detail on Netlink but not much. Notice that they still don't mention software for it. But there's the issue that seems to not phase Sega at all, that a person who actually wants their internet TV service, has to at minimum pay $50 more than what the original unsellable price of the Saturn was, which Sega than cut to be closer to PS, which also forced 3DO to cut from $400 to match PS, then not long after $50 below PS earlier this year. Not the price point of even modest adoption.
Clarion Ledger May 18th 1996
So Sega was supposed to come out in 1994 with the Saturn in the US which didn't happen, and therefore it was delayed until 1995. Apparently this delay which oddly matched the PlayStation US release date window, caused a 15% decline in profits. Sega lost near $40 million In their fiscal year ending in march. So clearly. the best thing to do at the time of losing money is to of course, cut the price, again, of your expensive top of the line consumer electronic product by $50 because.......
By now you're probably starting to realize, if you hadn't before, that Sega doesn't make any sense.
Sault Star May 18th 1996
This is just a repeat of the last one, I just find it curious how Sega is blaming a "later release" on its losses, yet was touting victory when it was slightly ahead of PS in 1995, which released near the same time. Something doesn't add up Sega,
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JUNE 1996
The Age June 26th 1996
So we are in June now, half-way through the year, and Sega is currently giving strong hints they aren't confident in the Saturn. They are already preparing computer games for PC due to the growth in the market, and the anticipation it will impact console sales (it won't).
Also notice the Nintendo director believing that if PC gaming continues to take off Nintendo may as well quit. Turns out he was wrong too. Already at this point the CD-rom is near standard on PCs and nothing was happening then, yet for some reason several companies, not just Nintendo and Sega, were thinking that console gaming would be dead or injured by 1998-1999. Nope. But Sega will act on the thing they haven't confirmed yet just the same.
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JULY 1996
News and Observer Jul 16th 1996
So this is continuing from the last article from June, just one month before. Here is Sega agreeing to partner with Compaq to produce games for its Presario computers. As Compaq is focusing on more than just productivity with these devices, but also multimedia. What luck Sega was already pulling a 3DO and moving toward PC already. It can now waste more money on a nothing project.
The Province July 26th 1996.
So here we have Sega kicking Tom Kalinske and replacing him with Shoichiro, and making Bernie Solar the new VP in a restructuring shake up.
The middle section is baffling to me. "how desperate video game companies have become" no...it's just Sega. "Money is no object at the moment, the price will be paid down the road" ok.... which road? Sega has been down many roads, where's the profit at the end of the tunnel? Pointless being aggressive with no plan.
Also new division Sega Soft, to help Sega focus on "games" which I guess means Sega wasn't focusing on games before? But don't worry Three Dirty Dwarves will save the Saturn.
Btw, did you know Ultimate Mortal Kombat 3 is the first MK title on the Saturn?
LA Times July 16th 1996
This just goes over some of the stuff from the last article about Segas shakeup.
The difference is here we find out Hayao and David both resigned during the shakeup. There's also a focus on Sega struggling in the market place.
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AUGUST 1996
Fort Mcmurray Aug 22nd 1996
So Sega seems to be wanting to be more like Nintendo for some reason, despite it's nearest competitor Sony gaining consumers based on broad demographics and genre/themes. They do later somewhat backtrack on this, but they did still limit violence to some extent. You won't be seeing GTA on the Saturn that's for sure. It may not seem like much at first glance, but this just adds more problems to the pile in dealing with Segas market performance.
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SEPTEMBER 1996
Leader Post Sept 4th, 1996
Presenting Sega City Pladium. get it? Play+Stadium=
You'll notice Sega and the names of their partners involved with this venture are the same as a much earlier article. This is what that "entertainment plan" ended up becoming.
It's not a theme park, but it costs more than an arcade. 40 locations planned to be build across Canada, and it aims to create a "new market" with this...somehow. Also look, that Imax snippet from a previous article is involved with these centers as well. See? it's all coming together.
But the article brings up a question that' quite important: "But will it make money?" btw, the "Staff" are called "gamers" huh.. 5 to 7 years to roll out the other locations, wow that's a longer time table than they said in the earlier article, and it won't happen anyway.
Btw, the pladium is pay to play. Games range from $1.60-$4.95 Canadian. Eh?
Santa Cruz Sentinel Sep 23rd 1996
So we finally get an info dump on Netlink, a date, and a $200 price. Of course you need a Saturn too. You can get a full package, which includes a keyboard so you don't have to use the screen, for $50 more than the original price of the Saturn at $450. Or you can pay $400 if you can't get the pack, or $200 if you already have a Saturn, but in both these cases you'll likely have to spend extra money on a compatible keyboard.
Of course, they still aren't mentioning the other fee(s) yet but that's another story.
Also notice the mention of Sony and Sega being in a price war Sega can't afford to be in. At this point its obvious it's not giving the sales increases Sega hoped for either, so at this point they seem to just be lost. Notice "doesn't yet have MP games" or "Sega is doing everything to make Saturn more attractive" are they? are they really?
Chicago Tribune Sept 27th 1996
So this seems to be more of a hit piece. Sega is betting on Netlink for Saturn adoption, and notice in no article yet has a game been mentioned and it's launching in October. It then makes a reasonable observation: would gamers, and if they are kids their parents, rather buy a $200 Netlink which also includes other fees and likely a keyboard as well, or with that same money, by 4 games for their Playstations? Heck that applies to the Saturn too. $200 will get you a good investment toward an N64 as well.
Sunday Telegraph Sept 8th 1996
SEGAWORLD THEME PARK! Just opened in London. 7 floors of fun, 10am-midnight. A "futuristic park" was built and it took two years to create, with money. E45 million is what it took to open this park. Surely it will be a massive hit and give 10x ROI....oh....
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OCTOBER 1996
Sydney Harald Oct 1st 1996
Sega making a deal with a third party to distribute arcades in Australasia. In 1996. Interesting timing Sega.
York Daily Record Oct 15th 1996
So, some people here likely have seen the name "Pico" before, but before you jump to conclusions that's not what THIS is. This is a edutainment BUS. Literally a bus, and it has stuff in it. This is not a consumer device.
Sega bus for the kids. 100% ROI.*
*no
The Province Oct 11th, 1996
This is just a sad article. This is clearly someone struggling having delusions. Who cares about the Nintendo 64 when Segas "defiantly" sticking to it's guns, the ones that barely function and keep backfiring. Clearly this is the strategy that will put Sega right at number one. lol.
The fact they brought the "it's too powerful" excuse for the software issue is amazing. Yet they had no issues on the PSX, hmmmmmmm.
"The games flow better and there's way more color" this is barely anything, what is this?
So Wardope said that "I thought Sonic was fast on the Genesis, but the gameplay on the Saturn is incredibly fast" which indicate he PLAYED a Saturn game, but WHICH Sonic game is he talking about? Or is he just talking about an imaginary game? Notice it doesn't give a name. None of the games on the Saturn are faster than the Genesis Sonic games, the closest you'll get are those same Genesis games in the Sonic Jam collection, including Sonic Xtreme.
I also like the blunt lying about the Saturn with Netlink being able to do EVERYTHING (???) A multi-thousand dollar PC can do. Wut? None of this addresses the problems Sega needs to resolve to be competitive, or at least avoid falling down a canyon. Not one bit.
Oakland Tribune Oct 10th 1996.
Sega is cutting game prices, but the fact Sega's retail partners weren't even made aware of the price cuts will of course, piss them the hell off, but the article is being nice about it. I mean a Sega rep even said "should be available now" I mean you can't make this stuff up.
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NOVEMBER 1996
Berkshire Eagle Nov 24th 1996
We are finally entering the Holiday season and the last two months of the year. Sega is struggling, and they need to save money and create some kind of safety net.
So fuck that, let's advertise this Pico console thing, and have the ad for it bee place right above one talking about curing foot fungus, just says "buy me" to the consumer. I wonder what the "free offer" is if you call.
News Tribune Nov 17th 1996
Finally the Netlink that's going to save Sega! OMG! Is out and is shipping yes SEGA IS SVAED! You heard it here first. No wait, no, not really.
.....$8 a month for 5 hours of usage. A month. 5 hours. $20 for unlimited.
They acknowledge you'll have to buy a keyboard if you don't want to use the controller and on screen pad, However, you need a $20 doohickey, so if you just brought the keyboard Sega says go screw yourself, buy our thingy or it won't work. Unless you buy the full package which includes a Sega keyboard, then you'll pay $450.
You still need to pay the other fees though.
Basically around $500, that will get you A Saturn, Netlink, and one game. Or you can pay $250 assuming you are buying a keyboard, if you already own a Saturn.
$500 you could get a PSX or an N64 with games.
$250 you can get a PSX or an N64 with a game.
Or you can pay $250-$500 to "surf" the net on a Saturn worse than a PC with no game, or one game if you pay the $500.
Man I am stumped which of these the average consumer will choose.
The State Nov 18th, 1996
Sega has a new machine in the works. A few reports about that going around then. I mean things are going so well I'm not surprised they would be looking for a quick replacement. Always replace the things that sell, that way you lose money, and that leads to a successful company.
Wait...
The Columbian Nov 21st 1996
So...
Looks like that Netlink may have a few issues, and not be the savior that it was supposed to be. So, all the money went to what exactly?
The article starts off taking a jab at Sega being in third place, though that happened less than a month after the N64 came out. Sega's panic on getting the Netlink out to save the Saturn has backfired, and not just because of these issues, it was also incredibly overpriced.
I like this quote "Netlinks best shot of salvation is online gaming" then says "Sometime in the first three months of NEXT YEAR, Sega promises Netlink owners will be able to play each other in several games" Sega, all this time to ship this shit and you don't have any damn games yet? That was the original point of the damn Netlink when you announced it before coming up with a name?
Detroit Free Press Nov 22 1996
"it's the only company of the big three that's strictly a video game company" not according to Sega the past..year. Maybe that's what they should have been the whole time.
So the "not a 3D machine" was making rounds but it was especially picking up at this point because people were upset. I do disagree with the excuse above the 2D console one though, I don't think there's a single Japanese game exclusive to Japan that would have helped the Saturn if brought over that wasn't already released in the US. I looked at the best selling titles, I don't see one.
Clearly these people never heard of Netlink, which will save Sega. But the point of this article is to show that Segas image was more than just a little bruised by this point.
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DECEMBER 1996
Leader Post Dec 28th, 1996
We are now in December, the final stretch! Let's see how...oh.....
So this is a bit self-explanatory. The fact Sega months ahead of time knows their fiscal year is doomed is pretty telling. Sega has really fallen low during just this last year haven't they? Crazy how just in January it seemed like they were on the cusp of charging ahead. Interesting.
Fort Worth Telegram dec 28th 1996
So Sonic X-treme is recalled on the even of its launch, and Sega is struggling, but it's thanks to....*checks notes*......Nights? That a knockout blow wasn't delivered to Sega. According to this guy anyway. Apparently it's a substitute for Mario 64. Peter-Pan flying game lol.
Tallahassee Democrat Dec 27th 1996
I mean, Nintendo invested in call center help lines for dumb people that can't press the A button too, so I can't really go too hard on Sega for this, but the amount of investment seems a bit high, and I don't believe Sony went this far either, maybe they did, but something tells me this is excessive and costly. I guess for those playing Nights this might be useful since people even today who first play that game on a used Saturn or emulator have no clue what they are doing.
Sydney Harald Dec 28th 1996
So, $253 million loss for sega.
Just good ol' $253 million loss, nothing to see here. Everything is fine. Slashing of a forecast of Y27Billion to Y11Billion is perfectly normal and happens all the time.
it's only a "special" loss, nothing serious, but I'd reckon Sega would want to avoid more "special" loses in the future, but that's just my opinion. Clearly, they know what they re doing and have everything under the control.
Vancouver Sun Dec 21st 1996
Say, remember that Sega/Dreamworks/MCA Gameworks thing? Well now they are trying to lease space at the liberty center in New York. Clearly a worthwhile investment, and I believe Gameworks will be around for a long time with a high ROI.
No it won't.
Daily Advertiser Dec 29th 1996
Another $215 million dollar loss at Sega, US division. Which they blame on inventory of the Genesis they didn't market and support correctly totaling $61 million.
Now, I'm not a Math Professor Teaching Calculus 4 at some $80,000 a year college. But I just feel that maybe Sega is doing just a tiny bit of bullshit here, just a tiny bit, with the blame game they are playing.
They also cut their group net profit by $46 million.
These are all signs of a company that is run well and on the cusp of a comeback any moment now. Especially with Netlink still not having any games or a price cut, which will cause consumers to buy more Saturns. And they needed to kill the Genesis, having a safety net is something that bad companies would do, while we are at it, the arcade division is wobbly but that's ok, it's all apart of the massive growth Sega is imagining it's having. If we just open some more SEGWAROLDS parks all the problems will go away.
Vancouver Sun Dec 14th 1996
Well Netlink didn't work out, but will will save the Saturn is clearly, clearly, having it function as a video phone. yes, an (expensive) adapter and mic/camera + service will allow users to video call on the phone. This investment had a clear path to ROI, it doesn't, and will surely end up being very profitable. Sega doesn't panic and react, they come up with unique ideas that always succeed at not generating profit. That's the Sega difference.
Wait...
End of PT1
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