Sunday, August 17, 2025

A Retro Resistance Special - What Destroyed Sega? Part 3

Continued from Part 2

Chapter 11 - The Dream Becomes A Nightmare. 

Sega's momentum with the Dreamcast started to slowly decline in Japan by Late 1999, with 1,000,000 sold, and in The U.S. by Early 2000, with 2,000,000 in sold.

Poor Japanese sales contributed to Sega's 42.88 billion Yen ($404 million) consolidated net loss in the fiscal year ending March 2000, which followed a similar loss of  42.881 billion yen the previous year and marked Sega's third consecutive annual loss. Although Sega's overall sales for the term increased 27%, and Dreamcast sales in North America and Europe greatly exceeded the company's expectations, this increase in sales coincided with a decrease in profitability due to the investments required to launch the Dreamcast in Western markets and poor software sales in Japan. 

By 2000, Dreamcast sails came to a screeching halt, as most Japanese Youth were saving their Money for the Upcoming Sony Playstation 2 and the Nintendo Gamecube.  In The U.S., things were a Bit brighter for Sega. Due to a chip shortage, Sony was unable to launch enough PS2's to satisfy demand, so the Dreamcast continued it's momentum....at least, for a short while.

Peter Moore became the president and chief operating officer of Sega of America on May 8th 2000. He said that the Dreamcast would need to sell 5 million units in the U.S. by the end of 2000 to remain a viable platform, but Sega ultimately fell short of this goal with some 3 million units sold. The Hype for Sony's Playstation 2 was too strong. 

Eventually, Sony and Nintendo held 50 and 40 percent of the US video game market by the end of 2000, respectively, while Sega held only 10 percent. 

According to former Sega of America vice president of communications Charles Bellfield, Dreamcast software sold at an 8-to-1 ratio with the hardware, but this ratio "on a small install base didn't give us the revenue ... to keep this platform viable in the medium to long term.   

In 2000, Sega and CSK Corporation chairman Isao Okawa replaced Shoichiro Irimajiri as president of Sega.  Irimajiri had been replaced as a result of Sega's financial losses. Okawa had long advocated that Sega abandon the console business. His sentiments were not unique; Sega co-founder David Rosen had "always felt it was a bit of a folly for them to be limiting their potential to Sega hardware", and Stolar had previously suggested that Sega should have sold their company to Microsoft.

In September 2000, in a meeting with Sega's Japanese executives and the heads of the company's major Japanese game development studios, Moore and Bellfield recommended that Sega abandon its console business and focus on software, prompting the studio heads to walk out.

On November 1st, 2000, Sega changed its company name from Sega Enterprises to Sega Corporation. In December 2000, The New York Times (know known as the rotten apple shit-rag) reported that Nintendo and Sega were holding discussions regarding a potential $2 billion buyout, though the two companies denied this; a Sega spokesman called the report "absolutely outrageous".

Okawa talked to Microsoft about a sale or merger with their new Xbox division, but those talks failed. Forbes has speculated that the Nintendo buyout discussions could have been to put pressure on Microsoft to acquire Sega. 

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Chapter 12 - Destruction and Reconstruction 

On January 23rd, 2001, a story ran in Nihon Keizai Shimbun claiming that Sega would cease production of the Dreamcast and develop software for other platforms. After initial denial, Sega of Japan put out a press release confirming they were considering producing software for the PlayStation 2 and Game Boy Advance as part of their "new management policy".

On January 31st, 2001, Sega announced the discontinuation of the Dreamcast after March 31st and the restructuring of the company as an official  third-party developer (ala capcom and konami). Sega also announced a Dreamcast price reduction to $99 to eliminate its unsold inventory.

After a further reduction to $79, the Dreamcast was cleared out of stores at $49.95. The final Dreamcast unit manufactured was autographed by the heads of all nine of Sega's internal game development studios and given away with 55 first-party Dreamcast games through a competition organized by GamePro magazine.

Isao Okawa, who had previously loaned Sega $500 million in the summer of 1999, died on March 16th, 2001; shortly before his death, he forgave Sega's debts to him and returned his $695 million worth of Sega and CSK stock, helping the company survive the third-party transition.

As part of this restructuring, nearly one-third of Sega's Tokyo workforce was laid off in 2001. 

Sega was officially destroyed, but would eventually rebuild sometime after becoming a 3rd party developer.

Sega would soon make amends with Nintendo and begin creating games for it's Game Cube and Game Boy Advance systems. By March 31st, 2002, Sega had five consecutive fiscal years of net losses and didn't recover until 2003.

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Epilogue -  The Answer To The Question 

Now for the answer to the Question posed by this series - What Destroyed Sega? The Answer - Sega of Japan!

If it wasn't for them and Hayao Nakayama's Hard-assness and unwillingness to Listen to Tom Kalinske and Sega of America, Sega might not have been destroyed And might have been Stronger today And, likely, in the Console business for a bit longer. 

Let's look at what I mean.

- If it wasn't for Nakayama and Sega of Japan, the Sony Playstation, which decimated them in the 32-Bit Wars, Wouldn't have Existed. Why? How? Because, they Rejected a Partnership with Sony to create a CD System, being too proud of The Mega CD/Sega CD Add-On and confidence in the, thenupcoming, Sega Saturn. Had they embraced Sony, Ditched the Sega CD and Canned the Saturn, Sega would have little competition in the Late 90s and Be Financially Healthy. Thus, preventing their downfall. 

- Sega America was comfortable with Just the Sega Genesis and wanted to wait another year for the Sega Saturn, but Sega of Japan and Hayao Nakayama insisted and forced them to create that Horrible 32X Add-On, which not only was a mess of wires in the back, but also required it's own plug. Plus some games required the Sega CD to play. Had Nakayama showed patience, the 32X wouldn't have existed and Sega's rep wouldn't have been damaged because of it.

- Because of the early American launch of The Sega Saturn, The system died prematurely in the States. All because of Hayao Nakayama's paranoia towards the popularity of Sony's Playstation (which exists because of Him,btw.). Had Nakayama remained level headed, the Saturn would've launched on it's originally intended Launch Date and survived through out the rest of the 90's. And on toppa that, Localizers and Western Developers, who were supposed to have their games launch with the System, would actually Get that chance. But No. NO. Nakayama Had to be a Paranoid Loser and force Sega of America to launch the System too early with very few Launch titles. And at $399, 100 bucks more expensive than the Playstation, The Sega Saturn never stood a chance in North America.

- Speaking of the Saturn, Sega of Japan did very little to help Sega of America with the struggling System in the U.S. Ignoring the Biggest and Best Market was a Huge Mistake. Seriously, Sega of America could've used a Segata Sanshiro of their own. I guess SoA could've gotten Adam West or Mr. T to be their equivalent? Had Sega Japan lent more of a hand, The Sega Saturn and Sega's reputation would've been salvaged.  

- The Sonic X-treme Incident. Sega of Japan left Sega of America to work on the game alone instead of Helping them. As a result, the game was Canceled and the Saturn went without an Original Sonic Title. I'll talk more about Sonic X-treme at a later day and time. Had the 2 Sega's worked together, Sonic X-treme Would've been released and, maybe, been a hit. 

- Sega was forced out of the console business early, thanks to Sega of Japan. Had the Sega Saturn been a Success in America, The Dreamcast would've launched much later And Maybe, been improved. There's also the chance that Sega would've stayed in the console race a bit longer. Making it a Fatal 4-Way between Itself, Nintendo, Sony, and Microsoft. Or a Triple Threat, if Microsoft decided Not to enter the console race itself.

So there's your definitive answer on What Destroyed Sega?. I'll admit, even though it would've been interesting to see what Sega could've been, had their Japanese Bosses Not screwed things up, I kinda like Sega as a 3rd Party company. As I'm a Huge Supporter of a Super Mario/Sonic The Hedgehog crossover. And I liked playing as Sonic in Super Smash Bros.  

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And that concludes my "What Destroyed Sega" Special. Hope you all enjoyed. Sega Sucks Beyond Sucks now, but from 1989 - 2002/2003 they were a Damn Good Game Company.

Until Next Time, Punch a Nazi, Kick a Commie, Resist Modern Attitudes, and Stay Gold. 

Saturday, August 16, 2025

A Retro Resistance Special - What Destroyed Sega? Part 2

Continued from Part 1 

Chapter 5 - Genesis Does What Nintendon't!!! 

October 29, 1988, Sega released it's 16-Bit Machine, The Megadrive, The launch of the Megadrive was overshadowed by Nintendo's release of Super Mario Bros. 3 a week earlier. Though the system Did get some positve coverage from prominent Japanese Gaming Magazines, such as Famitsu and Beep!. This helped the Megadrive gain a small following.

Sega only managed to ship 400,000 units in the first year. The Megadrive 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 didn't have a North American sales and marketing organization for its consoles, but ultimately decided to launch the console through its own Sega of America subsidiary, which launched later that year. 

For the North American market, where the console was renamed The Sega Genesis , former Atari executive and new Sega of America CEO Michael Katz instituted a two-part approach to build sales in the region. The first part involved a marketing campaign to challenge Nintendo head-on and emphasize the more arcade-like experience available on the Genesis, summarized by the "Genesis does what Nintendon't" ad campaigns.

Since Nintendo owned the console rights to some of the greatest arcade games of the time, the second part of the involved creating a library of licensed titles, which used the names and likenesses of celebrities and athletes, who would endorsement the games And Sega itself.

Despite this success, Sega failed to beat Nintendo in the Console Market. Tasked by Sega President, Hayao Nakayama to sell one million units within the first year, Katz and Sega of America managed to sell only 500,000+ units. 
 
Due to the Total Failure of their Mascot, Alex Kidd, Sega knew it was time for a Brand New one. A Mascot that was gonna represent Sega in the future. Naoto Ohshima designed a teal hedgehog with red shoes, known only as Mr. Needlemouse.  This character won the contest and was renamed Sonic the Hedgehog, spawning one of the most legendary video game franchises in history.

The gameplay of Sonic the Hedgehog originated with a tech demo created by Yuji Naka, who had developed an algorithm that allowed a sprite to move smoothly on a curve by determining its position with a dot matrix. Naka's original prototype was a platform game that involved a fast-moving character rolling in a ball through a long winding tube, and this concept was subsequently fleshed out with Ohshima's character design and levels conceived by designer Hirokazu Yasuhara.

Sonic became blue to match Sega's blue logo, and his shoes were a concept evolved from a design inspired by Michael Jackson's boots with the addition of the color red, which was inspired by both Santa Claus and the contrast of those colors on Jackson's 1987 album Bad. His personality was based on Bill Clinton's "can do" attitude in politics

Sonic was a Japanese creation, inspired by Americans.  
 
In mid-1990, Nakayama hired Tom Kalinske to replace Katz as CEO of Sega of America. Although Kalinske initially knew little about the video game market, he surrounded himself with industry-savvy advisors. A believer in the razor and blades business model, he developed a four-point plan: cut the price of the console, create a U.S.-based team to develop games targeted at the American market, continue and expand the aggressive advertising campaigns, and replace the bundled game Altered Beast with a new game, Sonic the Hedgehog.

The Japanese board of directors hated 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."  Magazines praised Sonic as one of the greatest games made, and Sega's console finally became successful. 

In large part due to the popularity of Sonic the Hedgehog, the Sega Genesis Finally defeated the Nintenso Entertainment System and gained a strong foothold in the American Market, even briefly outselling Nintendo's Newest platform, The 16-bit Super Nintendo Entertainment System.

Due to the lack of 16-bit hits on Nintendo's, The 1991 holiday season favored Sega and it's bigger library of games. This success led to Sega having control of 65% of the 16-bit console market in January 1992, making it the first time Nintendo was not the console leader...except in Japan, where Nintendo still reigned Supreme.

The Console Wars had Begun!!

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Chapter 6 - The Console War Begins.

To compete with Nintendo, Sega was more open to new types of games than its rival, but still tightly controlled the approval process for third-party games and charged high prices for cartridge manufacturing. Technicians from Electronic Arts (EA) reverse engineered the Genesis in 1989, following nearly one year of negotiations with Sega in which EA requested a more liberal licensing agreement. 

As a result, EA signed what founder Trip Hawkins described as "a very unusual and much more enlightened license agreement" with Sega in June 1990: "Among other things, we had 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."

The first Genesis version of EA's John Madden Football arrived before the end of 1990, and became what EA creative officer Bing Gordon called a "killer app" for the system. 

Great Sports titles were something that Sega had over the Super Nintendo at the time, and it drew in older players.  

Another issue Sega of  America had to deal with was Nintendo's dominance with retailers. Major retail stores such as Wal-Mart, Target, and Kmart had all refused to carry the Genesis in their stores. To get Wal-Mart to carry the system, Kalinske advertised the system heavily in Bentonville, Arkansas, where Wal-Mart's home office is located. Tactics used in the area included renting billboards, radio advertisements, sports stadiums, and renting a store in the local mall. This resulted in Wal-Mart relenting and choosing to carry the Genesis. 

In the Good 'Ol U.S. of A, Sega was able to outsell Nintendo 3 Christmas seasons in a row ('91, '92, and '93) due to the Genesis' head start, a lower price point, and a larger library of games when compared to the Super Nintendo at its release.

Sega's advertising positioned the Genesis as the cooler console, and as its advertising evolved, the company coined the term "blast processing" to suggest that its processing capabilities were far greater than those of the SNES. Yup, while The SNES was much Smarter and slightly Stronger, The Genesis excelled at Speed. This made for some exciting 16-bit gameplay sessions. 

After the release of the Sega 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 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. As a result of piracy in some countries and unlicensed development issues, Sega incorporated a technical protection mechanism into a new edition of the Genesis released in 1990, This new variation of the Genesis included a code known as the Trademark Security System (TMSS). 

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 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.

Despite winning an injunction in the initial district court case, as a result of Accolade's appeal, the Ninth Circuit overturned the district court's verdict and ruled that Accolade's de-compilation of the Sega software constituted fair use 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 the licensing 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. 
 
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Chapter 7 - The Mortal Kombat Incident and The Birth of the ESRB.

In 1993, when the American media began to focus on mature content, the American video game industry followed suit, including Sega. Games such as Night Trap for the Sega CD received unprecedented scrutiny. Issues about Night Trap were brought up in 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 was Midway's Mortal Kombat, ported to the Genesis and SNES by Acclaim. 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, however, 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 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 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 or a Blood Code.

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 of the game.

In 1993, Nintendo was running neck and neck with Sega Stateside, due to it's great 3rd Party Titles, Legend of Zelda - A Link to the Past (released a year prior) and Super Mario All-Stars. However, thanks to the Mortal Kombat Incident, that changed. Because unlike with Nintendo, Sega decided to cater to Both Concerned Parents And Gamers. This led to big sales of the Genesis and gave the Console a slight lead for the rest of the year. 

Due to this incident The U.S. Government decided to hold a hearing on Mature Themes in Video Games. 

At the hearing, Executive vice president of Nintendo of America Howard Lincoln was quick to point out that Night Trap had no such rating. 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, Senator Joe Lieberman called for another hearing in February 1994 to check on progress toward a rating system for video game violence.  Although  Night Trap recieved a slight sales increase, Sega decided to recall the game 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 the universal adoption of its system, but after objections by Nintendo and some Senators, Sega took a role in forming the new one. This became the Entertainment Software Rating Board, an independent organization that received praise from Lieberman. 

Personally, I'm glad the ESRB exists, as it gives consumers basic information about the game's content before they decide to buy it. Good Going Joe Lieberman and The VG Devs. 

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Chapter 8 - Welcome To The Next Level! 

In 1990, Sega launched it's Own Handheld, the Game Gear to compete against Nintendo's Game Boy. The Handheld itself had been designed as a portable version of the Master System, and was slightly more powerful It also included a backlit screen And was in Color. 

However, due to issues with battery life, lack of 3rd Party games, and weak support from Sega Japan, the Game Gear was unable to surpass the Game Boy, selling approximately 11 million units to The Game Boy's 100+ Million (and that's just talkin' about the OG Game Boy). 

The Game Gear would be supported until Late-1995, though only in America. In Japan the Handheld died a year earlier in Late-1994.

By 1991, compact discs (CDs) had gained in popularity as a data storage device for music and software. PCs and video game companies had started to make use of this technology. NEC had been the first to include CD technology in a game console with the release of the TurboGrafx-CD add-on, and Nintendo was making plans to develop its own CD peripheral with Sony. 

Now, before I talk about Sega's CD peripheral, a bit of history.  

After being rejected by Nintendo, In 1992, Sony turned to Sega for a partnership for a CD Console, Sega America loved the idea of a jointly developed CD console. However,Sega Of Japan outright rejected the partnership, still having faith in their Mega CD. And, little did anyone outside of Sega Japan knew, Sega was creating it's Own CD-based system, the soon to be named, Sega Saturn

For this Add-On, Sega partnered with JVC and Launched the The Sega CD (called the Mega-CD in Japan) on December 1, 1991, initially retailing at 49,800 Yen. The CD add-on was launched in North America on October 15, 1992, as the Sega CD, with a retail price of $299

Europe sold get this Add-On too in 1993. 

In addition to greatly expanding the potential size of its games, this Add-On upgraded the graphics and sound capabilities by adding a second, more powerful processor, more system memory, and hardware similar to that found in Sega's arcade games.

The Mega-CD sold only 100,000 units during its first year in Japan, falling well below expectations. Although many consumers blamed the Add-On's high launch price and lack of strong software library at launch. This was due to the long delay before Sega made its software development kit available to third-party developers.  

Sales were more successful in North America and Europe, however, although the novelty of Full Motion Video (FMV) and CD-Enhanced games quickly wore off as many of the Sega CD's later games were met with lukewarm or negative reviews. To add to these issues, the load times for most of these games was slow.

The Sega CD died in Japan in Late-1993 and in North America in Late-1994.
 
As for Sony, After being rejected by both Nintendo And Sega, they've decided to create their Own CD-based Console, The Sony Playstation. And it was Way more Popular and Way More Profitable than The Sega CD. Selling 90,000 units on the First Day! Ouch!!

If that wasn't enough Headaches for Sega, let's chat about the 32X, their 2nd Add-On for the Genesis. 

In January 1994, Sega began to develop an add-on for the Genesis, the 32X, which would serve as a less expensive entry into the 32-bit Era and bridge the gap between The Genesis and the Next Sega Console.

The decision to create the add-on was made by Hayao Nakayama and widely criticized by Sega of America employees, as they believed that the Genesis was doing fine on it's own and that the consumers can wait for the Next Gen. But Nakayama was adamant, and as Their Boss ordered them to create the Add-On. Sega America relented and did what Nakayama asked.  

According to former Sega of America producer Scot Bayless, Nakayama was worried that the Saturn would not be available until after 1994 and that the recently released Atari Jaguar would reduce Sega's hardware sales (it didn't, though another, more popular and famous console did). As a result, Nakayama ordered his engineers to have the system ready for launch by the end of the year.

Though The 32X was incompatible with the Saturn, they shared the same system architecture. Plus, the 32X could play Genesis titles ant a greater speed. The main reason for the Add-On's existence was to cater to players who couldn't afford a Saturn. 

Because both machines shared many of the same parts and were preparing to launch around the same time, tensions emerged between Sega of America and Sega of Japan when the Saturn was given priority. Sega released the 32X on November 21, 1994, in North America, December 3, 1994, in Japan, and January 1995 in Europe, and was sold at less than half of the Saturn's launch price. 

But, things were about to go Waaaaay South For Sega. Y'see, while They were busy with their 32-Bit Add-On, Nintendo was working on a game, with Rare, that would push the limits of the Super Nintendo. Zero Add-On's Needed!!!!!

And that game was, none other than, Donkey Kong Country. Soon, the 32X was losing big and many were questioning Why Sega would create this in the first place? As the Saturn's American release was just around the corner.      

After the '94 holiday season interest in the 32X rapidly declined. The Add-On died in North America in Mid-1995, while in Japan it died about a Month after it's release. Damn.

For the first time in a while, Nintendo managed to get the lead in the Console Wars and that lead never diminished. 

Frankly, The 32X made Sega look greedy and Dumb to consumers, they were supposed to be the Cool Kids. 

Sega's credibility and reputation took a major hit after the release of the 32X...and it would get even more damaged later with the premature release of the Sega Saturn. 

The 32X library managed to grow to 40 Games, some of which players needed to the Sega CD for. These were called the 32X CD games. 

And since the Sega CD was dead at this point....there was just no Hope for this Add-On.

Well, still not wanting the tech to go to total waste, Sega of America decided to salvage it into a Stand Alone Console, The Sega Neptune...which never got released. 

Now, before we talk about The Sega Saturn, let's talk briefly about the The Sega Channel and The Sega Nomad.

The Sega Channel was unleashed in December of 1994 in North America in a partnership between Sega, TCI, and Time Warner Cable  The Service had Fully Playable Games (including exclusive ones), News, and even Tips and Tricks. The Service was discontinued in July of 1998.

In 1995, The Sega Nomad was created, as Sega's Final Handheld, but unlike the Game Gear, The Nomad was designed to play Genesis games on the go. But, if you thought that the Game Gear had poor battery life, it was Nothing compared to the Nomad. 

If you wanted extended play, ya had to use an AC Adapter. On the bright side, You can use the Nomad as a Genesis, as you can hook it up to your TV And it even has a port for a 2nd Controller.  

The Nomad sold well, but only for a brief period. And was Only Available in North America.

In Late-1996, The 16-Bit Console Wars ended...with Nintendo the Victor. While the MegaDrive died in Japan 1995, The Genesis died in North America in 1996.

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Chapter 9 - Saturn From Saturn and The Downfall. 

Development on The Sega Saturn, started over two years before the system was showcased at the Tokyo Toy Show in June 1994. The name "Saturn" was the system's codename during development in Japan, but was chosen as the official product name.

According to Tom Kalinske, Sega of America "fought against the architecture of Saturn for quite some time". Seeking an alternative graphics chip for the Saturn, Kalinske attempted to broker a deal with Silicon Graphics, but Sega of Japan rejected the proposal. Silicon Graphics instead collaborated with Nintendo on the Nintendo 64. 

Publicly, Kalinske defended the Saturn's design: "Our people feel that they need the multiprocessing to be able to bring to the home what we're doing next year in the arcades." 

In Late-1993, Sega restructured its internal studios in preparation for the Saturn's launch. To ensure high-quality 3D games would be available early in the Saturn's life, and to create a more energetic working environment, developers from Sega's arcade division were asked to create console games. New teams, such as Panzer Dragoon developer Team Andromeda, were formed during this time.

Sega released the Saturn in Japan on November 22, 1994, at a price of  44,800 Yen [roughly $150] Virtua Fighter, a faithful port of the popular arcade game, became the System's best Seller in the early going and Most Japanese Youth bought a Saturn, Just to play Virtua Fighter at home. Fueled by the popularity of Virtua Fighter, Sega's initial shipment of 200,000 Saturn units sold out on the first day, and was more popular than the PlayStation in Japan....at least for the moment.

And now...we get to the beginning of Sega's Downfall.   

In March 1995, Sega of America CEO Tom Kalinske announced that the Saturn would be released in the U.S. on "Saturnday", Saturday September 2, 1995. However, Sega of Japan mandated an early launch to give the Saturn an advantage over the PlayStation, which was gaining momentum in Japan.

Kalinske argued that an early launch would damage the Saturn's reputation, especially with few of the promised launch titles. But, Nakayama was adamant. So, the Saturn's North American Launch was moved ahead from September of '95 to May of '95.    

At the first Electronic Entertainment Expo (E3) in Los Angeles on May 11, 1995, Kalinske gave a keynote presentation in which he revealed the release price of the Saturn at $399 (including a copy of Virtua Fighter), and described the features of the console. He then told everyone that the Sega Saturn was available Now, which shocked everyone. Not to mention Pissed off Developers and Localizers, who were promised to have their Games available at launch, but couldn't due to the games not being ready by that time. The announcement also upset retailers who were not informed of the surprise release, including Best Buy and Walmart, KB Toys responded by dropping Sega from its lineup.

Kalinske also revealed that, due to "high consumer demand", Sega had already shipped 30,000 Saturns to Toys "R" Us, Babbage's, Electronics Boutique, and Software Etc. for immediate release. 

But that's not All, at the the Same Event, Sony of America announced that the Sony Playstation would be available in September And would be 100 Dollars Cheaper than the Saturn. During his final words on the Playstation, Sony America's President Steve Race, instead of giving a speech, he uttered these words "299".

It was the Price heard around the World and another Major Blow to Sega. 

The Saturn's U.S. launch was accompanied by a reported $50 million advertising campaign that included coverage in publications such as Wired and Playboy. Early advertising for the system was targeted at a more mature, adult audience than the Sega Genesis ads.

Because of the early launch, the Saturn had only six games (all published by Sega) available to start as most third-party games were slated to be released later. Virtua Fighter's relative lack of popularity in the West, combined with a release schedule of only two games between the surprise early launch, prevented Sega from capitalizing on the Saturn's early timing.

Within two days of its September 9, 1995, launch in North America, the PlayStation sold more units than the Saturn had in the five months following its surprise launch. On October 2, 1995, Sega announced a Saturn price reduction to $299. Notwithstanding a subsequent increase in Saturn sales during the 1995 holiday season, new games were not enough to reverse the PlayStation's decisive lead.  By 1996, the PlayStation had a considerably larger library than the Saturn, although Sega hoped to generate interest with upcoming exclusives such as Nights into Dreams.

And to make matters worse, The Planned Sonic The Hedgehog game for the System, Sonic X-treme was canceled after delays and other unforeseen issues. I may talk more about that game another day. So, instead of Sonic X-treme, Sega Made an enhanced port of Sonic 3D Blast in 1997.

Anyway, Within its first year, the PlayStation secured over 20% of the entire U.S. video game market. On the first day of the May 1996 E3 show, Sony announced a PlayStation price reduction to $199, a reaction to the release of the Model 2 Saturn in Japan at a price roughly equivalent to $199. On the second day, Sega announced it would match this price, though Saturn hardware was more expensive to manufacture. 

Despite the launch of the PlayStation and the Saturn, sales of 16-bit hardware/software continued to account for 64% of the video game market in 1995. Sega underestimated the continued popularity of the Genesis in the U.S., and did not have the inventory to meet demand for the product. 

Sega was able to capture 43% of the dollar share of the U.S. video game market and sell more than 2 million Genesis units in 1995, but Kalinske estimated that "we could have sold another 300,000 Genesis systems in the November/December timeframe."

Despite this, though, the Super Nintendo still continued to dominate the Genesis in both North America And in Japan. 

Nakayama's decision to focus on the Saturn over the Genesis, due to the Saturn's popularity in Japan, has been cited as the major contributing factor in this miscalculation. According to Sega Technical Institute head Roger Hector, after Sony's release of the PlayStation, the atmosphere at Sega became political, with "lots of finger-pointing". 

Due to long-standing disagreements with Sega of Japan, Tom Kalinske lost most of his interest in his work as CEO of Sega of America and on July 16, 1996, Shoichiro Irimajiri was appointed chairman and CEO of Sega of America, while Kalinske would leaving the company after September 30 of that year.

As a former Honda executive, Irimajiri had been actively involved with Sega of America since joining Sega in 1993. Sega also announced that David Rosen and Hayao Nakayama had resigned from their positions as chairman and co-chairman of Sega of America and Sega of Japan respectively, though both men remained with the company. 

Bernie Stolar, a former executive at Sony Computer Entertainment of America, was hired as Sega of America's executive vice president. Stolar, who had arranged a six-month PlayStation exclusivity deal for Mortal Kombat 3 and helped build close relations with Electronic Arts while at Sony, was perceived as a major asset by Sega officials. Finally, Sega of America made plans to expand its PC software business.     

Stolar had little to no faith in the Saturn or it's chances of recovery. He believed that the Saturn's hardware was poorly designed and it's American Launch was botched beyond fixing. So at E3 '97 He publicly announced that "The Saturn is not our future."

Despite this, Stolar continued to push for quality games for the system, and reflected that "we tried to wind it down as cleanly as we could for the consumer." At Sony, Stolar opposed the localization of certain Japanese PlayStation games that he felt would not sell well in North America, and advocated a similar policy for the Saturn during his time at Sega, although he later sought to distance himself from this perception. 

These changes were accompanied by a softer image that Sega was beginning to portray in its advertising, including removing the "Sega!" scream and holding press events for the education industry. 

By 1997, Sega was being Murdered by Nintendo in the 16-Bit front, and Decimated by Sony in the 32-Bit front. Plus, Sega's credibility and reputation was damaged even more thanks to the Saturn's botched launch. Things needed to change. While Sega of America was planning to salvage the reputation and legacy of the Sega Saturn, and in turn salvage their own, Sega of Japan had their Own idea.    

To boost the popularity of the Saturn in Japan, Sega introduced a new fictional spokesman, Segata Sanshiro, played by Kamen Rider Actor, Hiroshi Fugioka. Sanshiro was wild and unpredictable Karate Guy who would advertise Sega's Saturn products in His own crazy way. 

This guy became popular with Sega Fans. Plus he had his Own Theme Song and his own Video Game, released only in Japan for the Saturn.   

While Sega struggled greatly with its consumer division during the Saturn years, its arcade divisions remained profitable, with annual arcade revenues increasing year-on-year throughout the late 1990s. This was despite a market slump in the late 1990s, caused by the increased popularity of home video game consoles.  

In January 1997, Sega announced its intentions to merge with Bandai, a Japanese toy maker that was Japan's largest and the world's third largest at the time. The merger, planned as a $1 billion stock swap whereby Sega would wholly acquire Bandai, was set to form a planned company known as Sega Bandai, Ltd. Plans for the merger were necessitated by the struggling financial state of both Sega and Bandai, with Bandai announcing their anticipated loss for the fiscal year and Sega announcing a lower than expected profit. 

Initially planned to be finalized in October of that year, the merger was called off in May 1997. Opposition to the merger had grown in the ranks of Bandai's midlevel executives, with reasons cited including cultural differences with Sega's corporate culture colliding with Bandai's family-run business. This opposition had become so great that Bandai's board of directors called a meeting to discuss the situation and decided to cancel the merger, although they did agree to a business alliance with Sega.

The following day, Bandai president Makoto Yamashina resigned his position, taking responsibility for the failed merger and apologizing publicly for his inability to get the merger completed. In a separate press conference, Hayao Nakayama elaborated on his reason for agreeing to cancel the acquisition of Bandai, stating, "We will not be successful working together if Bandai's management cannot take hold of people's hearts." 

As a result of the company's deteriorating financial situation, Nakayama resigned as president of Sega in January 1998 in favor of Irimajiri. It has been speculated that Nakayama's resignation was in part due to the failure of the Sega Bandai merger, as well as Sega's 1997 performance. Bernie Stolar would subsequently accede to become CEO and president of Sega of America. 

Aside from the Saturn and Arcade, Sega made forays in the consumer PC market with the 1995 establishment of SegaSoft, which was tasked with creating original Saturn and PC games. The most notable games being ports of Sonic 3 and Knuckles in 1995 and Sonic CD in 1996.

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Chapter 10 - Sega Casts a Dream 

The Saturn failed to take the lead in the market as its predecessor had. After the launch of the Nintendo 64 in 1996, sales of the Saturn and its games were sharply reduced, while the PlayStation outsold the Saturn by three-to-one in the U.S. in 1997, all thanks to Final Fantasy 7.

As of August 1997, Sony controlled 47% of the console market, Nintendo 40%, and Sega only 12%. Price cuts and high-profile game releases didn't help against the Power of the Playstation and Final Fantasy 7.

After several years of declining profits, Sega had a slight increase in the fiscal year ended March 1997, partly driven by increasing arcade revenue. However, in March of 1998, Sega suffered its first financial loss since its 1988 listing on the Tokyo Stock Exchange. 

Shortly before announcing its financial losses, Sega announced that it was discontinuing the Saturn in North America to prepare for the launch of its successor. The Saturn would last a bit longer in Japan and Europe, before being discontinued in late-1998.

The decision to abandon the Saturn effectively left the All-Important Western market without Sega games for over one year. Sega suffered an additional billion consolidated net loss in the fiscal year ending March 1999, and announced plans to eliminate 1,000 jobs, nearly a quarter of its workforce.

With lifetime sales of 8 million units, the Saturn is considered a commercial failure, although it did remain popular in Japan for a while. In the Biggest and Best Market, however, things were the opposite. Thanks to the botched launch and lack of distribution, the Saturn failed in The U.S. and was not very popular, with many American Gamers opting to skip buying the Saturn to save their money for The Sony Playstation or Nintendo 64 instead. 

Despite taking massive losses on the Saturn, Sega felt confident about its new system and got to work on in in late-1997. Codenamed "Katana" in development, the System was built to be better and more powerful than the Saturn with high-end graphics and amazing sound, plus a better library of games. Sega eventually gave the console a name "Dreamcast".

The Dreamcast attracted significant interest and drew a lot of pre-orders. Sega soon announced that Sonic Adventure, the next game starring company mascot, Sonic the Hedgehog, would arrive in time for the Dreamcast's launch and promoted the game with a large-scale public demonstration at the Tokyo Kokusai Forum Hall.

However, Sega could not achieve its shipping goals for the Dreamcast's Japanese launch due to a shortage of PowerVR chips caused by a high failure rate in the manufacturing process. As more than half of its limited stock had been pre-ordered, Sega stopped pre-orders in Japan.

But, On November 27th 1998, the Dreamcast launched in Japan at a price of 29,000 Yen, and the entire stock sold out by the end of the day. However, of the four games available at launch, only one was a success, the port of Virtua Fighter 3, which was the most popular arcade game Sega ever released at that point. 

Sega estimated that an additional 200,000–300,000 Dreamcast units could have been sold with sufficient supply. Shoichiro Irimajiri hoped to sell over 1 million Dreamcast units in Japan by February of 1999, but less than 900,000 were sold, undermining Sega's attempts to build up a sufficient installed base to ensure the Dreamcast's success. Prior to the Western launch, Sega reduced the price of the Dreamcast to 19,900 Yen, effectively making the hardware unprofitable but increasing sales. 

In America, Sega of America's new senior vice president, Peter Moore, a fan of the attitude previously associated with Sega's brand, worked with Foote, Cone & Belding and Access Communications to develop the "It's Thinking" campaign of 15-second television commercials, which emphasized the Dreamcast's hardware power and coolness.

According to Moore, "We needed to create something that would really intrigue consumers, somewhat apologize for the past, but invoke all the things we loved about Sega, primarily from the Genesis days."

On August 11, Sega of America confirmed that Bernie Stolar had been fired, leaving Moore to direct the launch. Prior to the Dreamcast's release, Sega was dealt a blow when EA, the largest third-party video game publisher, announced it would not be developing games for the system.

EA executive Bing Gordon claimed "[Sega] couldn't afford to give us the same kind of license that EA has had over the last five years", but Stolar recounted that EA president Larry Probst wanted "exclusive rights to be the only sports brand on Dreamcast", which Stolar would not accept due to Sega's recent $10 million purchase of sports game developer, Visual Concepts.

While the Dreamcast would have none of EA's popular sports games, Sega formed their Own sports brand, "Sega Sports.

The Dreamcast launched in North America on September 9, 1999, at a price of $199, which Sega's marketing dubbed "9/9/99 for $199". Eighteen launch games were available for the Dreamcast in the U.S, compared to the 4 titles of the Japanese Launch. Sega set a new sales record by selling more than 225,000 Dreamcast units in 24 hours, earning the company $98.4 million in what Moore called "the biggest 24 hours in entertainment retail history".

Within two weeks, U.S. Dreamcast sales exceeded 500,000. By Christmas, Sega held 31% of the North American video game market share. On November 4th, Sega announced it had sold over one million Dreamcast units in the U.S.. However, things didn't go as smoothly, due to a glitch at one of Sega's manufacturing plants, which produced defective GD-ROMs.

Sega soon released the released the Dreamcast in Europe on October 14th, 1999 and sold 500,000 units in the region by Christmas 1999. Unfortunately, things were not as great over in Europe, as Sega sold less than 1 million Dreamcasts by the end of 2000. 

Though the Dreamcast launch had been successful, Sony still held 60 percent of the overall video game market share in North America And Japan with the PlayStation at the end of 1999.

The Dreamcast was doing Great in The Biggest and Best Market in the World, but Sony was about to spoil things. 

On March 2, 1999, in what one report called a "highly publicized, vaporware-like announcement" Sony revealed the first details of its next console The Playstation 2, which Ken Kutaragi claimed would allow video games to convey unprecedented emotions.

And on top of that, it was later revealed that The System would be 100% Backwards comparable with the PSX/PS1 Library and Peripherals. Plus, have DVD support. In Japan, the DVD market was lukewarm, but after the PS2's launch, The DVD market there Boomed.  

In the same year, Nintendo announced that its next generation console would meet or exceed anything on the market, and Microsoft began development of its own console. 

In 2000, Sega restructured its arcade and console development teams into nine semi-autonomous studios headed by the company's top designers. Studios included United Game Artists, Hitmaker, Smilebit, Overworks, Sega AM2, Sonic Team, WOW Entertainment, Amusement Vision, and Sega Rosso.

Sega's design houses were encouraged to experiment and benefited from a relatively lax approval process. This resulted in games such as Rez, Seaman, and Segagaga. Sega also revived franchises from the Genesis era, such as Ecco the Dolphin. AM2 developed what Sega hoped would be the Dreamcast's killer app, Shenmue, a "revenge epic in the tradition of Chinese cinema."

However, Shenmue went over budget and was rumored to have cost Sega over $50 million. As the first fully 3D platforming game starring Sega's mascot, Sonic the Hedgehog, Sonic Team's Sonic Adventure was considered "the centerpiece of the [Dreamcast] launch". Adventure garnered criticism for technical problems including erratic camera angles and glitches, but was praised for its "luscious" visuals, "vast, twisting environments" and iconic set pieces. It has been described as the Sonic series' creative apex.

However, it failed "to catch on with players in nearly the way that [Nintendo's] Mario 64 had done", perhaps due to a perceived lack of gameplay depth. In sports, Visual Concepts' NFL 2K football series and its NBA 2K basketball series were critically acclaimed. Additionally, with the release of Sega's NAOMI arcade system board, the focus of the arcade divisions shifted to produce games that could easily be ported to the Dreamcast. 

To Be Concluded in Part 3.

Monday, August 11, 2025

A Retro Resistance Special - What Destroyed Sega? Part 1

Sega, a now creatively bankrupt company, was once a dynamo in the Video Game industry. Back in the day, when you heard the name Sega, you thought of quality entertainment. Nowadays, not so much,especially their localization teams.

Anyway, In this multi-part project, I'm gonna do a dive into the rise and fall of Sega during the Console Wars. Yeah, Sega sucks Now, but I'm just gonna focus on the Console Wars.  

For those not in the know, the Console Wars took place in the 90's and it was between Sega of America and Nintendo of America for control of the North American Video Game Market, which Nintendo Ultimately won. 

Let's dive in to What Destroyed Sega. But first, I'm gonna lay out the company's origins. 

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Chapter 1: Humble Beginnings   

It all began with a businessman, a businessman named Irving Bromberg. He had been a major player in coin-op distribution since establishing the Irving Bromberg Company in New York in 1931  His son Martin Bromley joined the business after graduating high school. They saw an opportunity to bring something special to our troops during World War II  So In 1940, Bromberg, Bromley, and family friend James Humpert formed Standard Games in Honolulu, Hawaii, to provide coin-operated amusement machines to military bases.

In May 1945, Bromberg, Bromley, and Humpert established a second Hawaiian coin-op distributor called "California Games", and they dissolved Standard Games that August. California Games was eventually terminated the next year, after which the trio established "Service Games" to replace it on September 1, 1946.

At the time, the United States Army ceased operating slot machines and sold its inventory to Bromley. Service Games then restored the machines and sold them. In 1951 the Transportation of Gambling Devices Act outlawed slot machines in US territories, so in 1952, Bromley sent two of his employees, Richard Stewart and Ray LeMaire, to Japan to find a new distributors. Initially operating under a few different names such as "LeMaire and Stewart", the company provided coin-operated slot machines to U.S. bases in Japan and changed its name to "Service Games of Japan" by 1953. 

A year later, all five men established "Service Games Panama" to control its various entities. The company expanded over the next 7 years to include distribution in South Korea, the Philippines, and South Vietnam. Service Games Panama was equally owned by all five men, and purchased coin-op machines from Chicago-based Gottlieb and Bally Manufacturing for distribution.

The name "Sega", an abbreviation of "Service Games", was first used in 1954 on the Diamond Star Machine, a slot machine. During 1954, Humpert sold his interest in Service Games back to Bromley and Bromberg at a price of $50,000 each. Stewart and LeMaire later purchased shares from Bromley and Bromberg, resulting in an equal split among the four men for ownership of the company. Over the next seven years, Service Games continued to grow. 

As Service Games expanded, it began to attract attention from the US and Japanese governments. While the company had managed to get out of charges of bribery and tax evasion, between 1959 and 1960, Service Games was banned from US air bases in Japan and the Philippines. On May 31, 1960, Service Games of Japan was formally dissolved. A few days later, on June 3, two new companies were established to take over its business activities: Nihon Goraku Bussan and Nihon Kikai Seizō.

Kikai Seizō, doing business as Sega, Inc., focused on manufacturing slot machines, while Goraku Bussan, doing business under Stewart as Utamatic, Inc., served as a distributor and operator of coin-op machines, like jukeboxes. As part of the operations move, the two new companies purchased Service Games of Japan's assets. Bromberg and Bromley sold Service Games Hawaii in 1961 for a price of  $1.4 million, while retaining the name. Kikai Seizō and Goraku Bussan later merged in 1964.  

David Rosen, an American officer in the United States Air Force stationed in Japan, started Rosen Enterprises Ltd. after the Korean War. According to Rosen, he saw that the Japanese required photos for identification, rice ration cards, and employment. Because of this, he came up with an idea to import automated photo booths from the US to Japan and adapt them for use for these purposes. Rosen's business began in Tokyo in 1954.

By 1957, Rosen recognized that there was disposable income available in the Japanese economy, as well as an increase in leisure time in the Japanese culture. He began importing coin-op games to Japan, particularly focusing on hunting and shooting. 

Rosen stated that he had to acquire a license from Japan's Ministry of Industrial Trade and Industry to import games, and that he had to pay a 200% duty on his imported machines, plus duties on the shipping. As a result, importing games cost three times the cost of the machine. Despite this, Rosen says his machines made enough to pay for their cost within two months of operation because of how many plays they were receiving. He also claims that at his company's height, most Japanese cities had at least one of his arcades there, and that he had a virtual monopoly for approximately two years. Later, Rosen had competition in the form of Taito and Nihon Goraku Bussan.  

In 1965, Nihon Goraku Bussan acquired Rosen's company to form Sega Enterprises, Ltd., although Rosen has called it a "merger".  Rosen was installed as the CEO and managing director of the new company. According to Rosen, "Sega" was the brand name that Nihon Goraku Bussan was using, and that the decision was made to name the company with the most recognized name upon the merger, while the word "Enterprises" came from Rosen Enterprises.

Shortly afterward, Sega stopped its focus on slot machines and stopped leasing to military bases to focus on becoming a publicly traded company of coin-op amusement machines. Products imported included Rock-Ola jukeboxes and pinball machines by Williams, as well as gun games by Midway Manufacturing. 

Because Sega imported second-hand machines that frequently required maintenance, They began the transition from importer to manufacturer by constructing replacement guns and flippers for its imported games. According to former Sega director Akira Nagai, this led to Sega developing their own games as well.

Sega's first release of their own manufactured electro-mechanical game was the submarine simulator game, Periscope. The game sported light and sound effects considered innovative for that time, eventually becoming quite successful in Japan. It was soon exported to both the United States and Europe and was placed in malls and department stores, becoming the first arcade game in the US to cost 25 cents per play.

Sega was surprised by Periscope's success, and for the next two years, Sega produced between eight and ten games per year, exporting all of them. Despite this, rampant piracy in the industry would eventually lead to Sega stepping away from exporting its games. One such example occurred when Sega developed Jet Rocket. According to Rosen, after its American release in 1970, it was cloned by three Chicago manufacturers. This negatively affected the game's market performance. 

To advance the company, Rosen had a goal to take the company public, and decided this would be easier to accomplish in the United States than in Japan. Rosen was advised that this would be most easily accomplished through Sega being acquired by a larger company. In 1969, Sega was sold to American conglomerate Gulf and Western Industries. Bromley and Stewart sold their shares, 80% of the company, for a total of $10 million, while LeMaire retained his 20%.

As a condition of the sale, Rosen remained as CEO of the company until at least 1972. According to Martin Bromley's daughter Lauran, her father—who was in his fifties at the time—and the other owners saw the sale as an opportunity to retire. Six months later, with the deal done, Bromley joined with Stewart to form a company called Sega S.A. (also known as Segasa and Sega/Sonic) in Spain, which imported coin-op machines to Europe. 

In 1970, Gulf and Western placed Rosen at the head of a new company called Gulf and Western Far East Pacific, headquartered in Hong Kong. Sega Enterprises, Ltd. became a subsidiary of this new company, which Gulf and Western chairman Charles Bluhdorn hoped would become a powerful Asian conglomerate (though this hope would never come to fruition). Rosen, however, continued to develop his relationship with Bluhdorn, who took Sega Enterprises Ltd. public in the United States in 1974 by making it a subsidiary of an existing publicly traded corporation owned by Gulf and Western, called the Polly Bergen Company.

Rosen was appointed CEO of Polly Bergen, which was renamed Sega Enterprises, Inc. Sega Enterprises, Ltd. executive vice president Harry Kane took control of day-to-day operations at the Japanese subsidiary. In July 1975, Sega Enterprises, Inc. opened a new North American subsidiary called Sega of America in Redondo Beach, California. Kane took charge of this subsidiary in 1976 and was replaced in Japan by a new executive vice president named Dane Blough.

So, as you can see, despite popular belief, Sega got it's start as an American Company, run by Americans. Sega would be fully Japanese owned later. 

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Chapter 2 - Into The Arcades

At the end of 1970, Sega opened a 125-game arcade center in Sapporo. During the opening, Sega announced a partnership with Godzilla creators, Toho Films, for a joint venture of arcades, with a 70-game arcade to open in Nagasaki in January. These "family fun centers" began a business of arcade operation in Japan which Sega continued until January 2022. During 1973, Sega would release Pong-Tron, its first video-based game.

In North America in 1975, Sega purchased a 50 percent stake in Kingdom of Oz, a company that operated arcades in California shopping malls. Sega took full control by March 1976 with all arcades becoming Sega Centers,  and announced more centers to open in California in June 1977.  Following the model set forth by Chuck E. Cheese, created by Atari founder Nolan Bushnell, Sega opened its first P.J. Pizzazz, a Family Entertainment Center, in West Covina, California in June 1980. 

Despite competition from Taito's hit arcade game, Space Invaders in 1978, Sega profited well from the arcade gaming boom of the late 1970s, with revenues reaching $100 million by 1979. During this period, Sega acquired Gremlin Industries, a manufacturer of microprocessor-based arcade games, and operated as Sega/Gremlin after the acquisition. In 1979, Sega also acquired Esco Boueki (Esco Trading), founded and owned by Hayao Nakayama. This brought Nakayama into Sega Enterprises, Ltd., where he was named executive vice president and shared leadership responsibilities with Dane Blough. Blough continued to run finance and administration, while Nakayama took charge of sales, marketing, and R&D.

Rosen later admitted that he mainly purchased Esco Trading for Nakayama's leadership.  In 1979, the company released Head On, which introduced the "eat the dots" gameplay Namco later used in Pac-Man.  In 1981, Sega licensed and released Frogger, its most successful game until then. In 1982, Sega introduced the first game with isometric graphics, Zaxxon. In the early 1980s, Sega was one of the top five arcade game manufacturers active in the United States, as company revenues rose to $214 million.

Around the end of 1981, Gulf and Western transferred Sega to Paramount Pictures, in an effort to get into the gaming business, and launched its home gaming division.  

Despite Sega's successes, Rosen was cautiously optimistic about the future in a December 1981 interview for Cashbox. He stated that he felt the growth of the industry was slowing and that expansion options were becoming more limited. He also spoke of Sega's focus on their Convert-a-Pak program, which allowed for new games to be installed in existing arcade cabinets. This was introduced on Sega's G80 arcade system board. Rosen took further actions in his worries, including pushing the Gulf and Western board to buy out the minority shareholders of Sega, himself included, and advising at a distributor meeting that the industry needed to make major changes.

Around the same time, Sega/Gremlin announced a name change to Sega Electronics, Inc. As Rosen predicted, a downturn in the arcade business starting in 1982 seriously hurt Sega, leading Gulf and Western to sell its North American arcade manufacturing organization and the licensing rights for its arcade games to Bally. The company retained Sega's North American R&D operation, as well as its Japanese subsidiary, Sega Enterprises, Ltd. Sega Centers were sold to the Time-Out arcade chain, and all of the P.J. Pizzazz locations were closed.

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Chapter 3 - Into The Homes 

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 the time. Nakayama received permission to proceed, leading to the release of Sega's first home video game system, the SG-1000.

The first model developed was the SC-3000, a computer version with a built-in keyboard, but when Sega learned of Nintendo's plans to release a games-only console, they began developing the SG-1000 as well. The SG-1000 and SC-3000 were released in Japan on July 15, 1983, on the same day as Nintendo launched the Family Computer (Famicom) in Japan.  Though Sega only released the SG-1000 in Japan, later versions were released in several other markets worldwide.

Due in part to the SG-1000's steadier stream of releases, and in part to a recall on Famicom units necessitated by a faulty circuit, the SG-1000 chalked up 160,000 units in sales in 1983, far exceeding Sega's projection of 50,000 units. By 1984, the Famicom's success began to outpace the SG-1000, in part because Nintendo boosted its games library by courting third-party developers, whereas Sega was less than eager to collaborate with the same companies they were competing with in arcades. Not to mention All of Nintendo's 1st Party offerings were just Better than Sega's.

And now we know Why there were so few 3rd Party games for this line of Systems.

In November 1983, Rosen announced his intention to step down as president of Sega Enterprises, Inc. on January 1, 1984, though he would remain with the company in a consulting role. His statement to Sega's board of directors indicated a need to pursue other interests and investments. Jeffrey Rochlis was announced as the new president and COO of Sega. Rosen cited Sega's new licensing deal with Bally as part of Sega "entering a new era". 

Shortly after the launch of the SG-1000, Gulf and Western began to divorce itself from its non-core businesses after the death of Bluhdorn. At the time, Gulf and Western owned 91 percent of Sega Enterprises, Inc. Nakayama and Rosen arranged a management buyout of the Japanese subsidiary in 1984 with financial backing from CSK Corporation, a prominent Japanese software company.

The Japanese assets of Sega were purchased for $38 million by a group of investors led by Rosen and Nakayama. Isao Okawa, chairman of CSK, became the chairman of Sega, while Nakayama was installed as CEO of Sega Enterprises, Ltd.  Following the buyout, Sega released another console, the SG-1000 II, on July 31, 1984.  The SG-1000 II replaced the hardwired joystick with two detachable joypads. 

Due to the lack of success of the SG-1000, II Sega began working on the Mark III in Japan in 1985. Engineered by the same internal Sega team that had created the SG-1000. The Mark III was a redesigned version of the previous console. For the console's North America release, Sega restyled and rebranded the Mark III under the name "Master System".

The futuristic final design for the Master System was intended to appeal to Western tastes. The Sega Mark III was released in Japan in October 1985 at a price of ¥15,000. Despite being technically more powerful than the Famicom (known now in the west as the Nintendo Entertainment System), the Mark III did not prove to be successful at its launch. Difficulties arose from Nintendo's licensing practices with 3rd party developers at the time, whereby Nintendo required that games for the Famicom and NES not be published on other consoles. To overcome this, Sega developed its own games and obtained the rights to port games from other developers, but they failed to sell. .

By early 1992, Master System production ceased in North America and in 1990 in Japan. The Master System had sold between 1.5 million and 2 million units in the United States, finishing behind both Nintendo and Atari, which controlled 80 percent and 12 percent of the market, respectively. Sales in the United States were handicapped by ineffective marketing by Tonka, who marketed the console on behalf of Sega in the United States.

As late as 1993, the Master System's active installed user base in Europe was 6.25 million units and in Brazil, it was even More popular, where new variations have continued to be released in the South American Country, long after the console was discontinued. In Brazil the Master System was distributed by Sega's partner in the region, Tec Toy.  By 2016, Tec Toy had sold a combined 8 million units of the original Master System and various emulation-based successors in Brazil. 

During 1984, Sega opened its European division. While Sega wasn't interested in expanding to Europe, the company reconsidered after being contacted by Victor Leslie, a coin-op seller in the United Kingdom. Leslie was placed in charge of a new Sega office in London, to be named Sega Europe Ltd. Sega Europe would be the company's marketing base on the continent. 

Sega re-entered the North American arcade market in 1985 with the establishment of another new division at the end of a deal with Bally. With Sega Electronics, Inc. no longer in existence, Rosen and Nakayama hired Gene Lipkin to head the new division, Sega Enterprises USA, based in San Jose, California. Lipkin had previously worked for Atari and Exidy. Lipkin's new sales team head, Tom Petit, had previously worked for Nintendo and Data East.

The new subsidiary started with 22 employees, $500,000 in start-up revenue, and operated out of Lipkin's old employer's facilities until Sega's new facility was ready in August 1985. In May 1986, Lipkin resigned for personal reasons; Petit eventually took control of the division. Sega Enterprises USA held a rivalry with Sega Europe, as the North American division quickly outgrew the European one. 

In 1986, Sega of America was established to manage the company's consumer products in North America. Rosen and Nakayama hired Bruce Lowry, Nintendo of America's vice president of sales. Lowry was persuaded to change companies because Sega would allow him to start his new office in San Francisco. He chose the name "Sega of America" for his division because he had worked for Nintendo of America and liked the combination of words.

Initially, Sega of America was tasked with repackaging the Master System for a Western release, although distribution of the console would later be given to Tonka. During this time, much of Sega of America's new infrastructure was temporarily shut down. 
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Chapter 4 - The Challenge Is Always There!

In 1985, Sega released Hang-On, a motorcycle racing game programmed by Yu Suzuki under the Studio 128 development group. Offering advanced pseudo-3D "Super Scaler" graphics, the game was highly successful, to the extent that Sega struggled to keep up with resultant demand. This was followed by 1986's similar OutRun, which expanded on the conventions set in place by Hang-On. Its arcade release received positive reviews and became one of the most popular arcade games of the year, also winning the Golden Joystick Award for Game of the Year. 
 
Though both games were made available as stand-up cabinets, a significant part of their success was their deluxe forms, referred to by Sega officially as "Taikan games". Roughly translating to "bodily sensation" or "experience", the namesake referred to their eye-catching motion-based control scheme and hydraulic simulation movement, using rideable motorbike and car models.

Former Sega arcade director Akira Nagai has credited Hang-On and OutRun as the releases that helped to bring arcades out of the 1982 downturn and created new genres of games. In the following years, Sega would release multiple other successful games based on the taikan template, including Space Harrier and After Burner, as well as the first version of its popular UFO Catcher claw crane game.  In 1987, Sega sold over 40,000 arcade machines worldwide. 

As well as the rebound in arcade game profits caused by its high-quality creative, Sega saw success in operating its own arcades in both Japan and the US during the mid 1980s. In the former country, its first officially branded game centers opened under the "Hi-Tech Land" and "Hi-Tech Sega" chains. The openings came after the creation of the fueiho law and the amusement industry's "3K Cleanup Campaign", which attempted to dispel the "kurai, kowai, and kitanai" (dark, scary and dirty) aspects of the venues.

Similarly, Sega's Time-Out chain of arcades established through the December 1986 acquisition of the Time-Out Family Amusement Inc. company in the US followed on from previous venues opened in the 1970s. 

Alongside similar branded chains by competitors like Taito, the venues in both countries followed the trajectory previously set in place to make amusement arcades cleaner and more socially acceptable, installing features such as toilets for both men and women, lighting systems, and smoking areas. Sega's success in arcades kept the company afloat whilst its home consumer endeavours struggled, though the Time-Out chain in the US would later be sold during 1990 as a result of changing conditions in the amusement industry. 

And, the Biggest reason why Sega succeeded in the Arcades, was that there was no Strong Competition, as Nintendo had all but abandoned the Arcade Market in 1984. But would later return in 1990 with their Play-Choice 10 Arcade Machine.

And that's it for this part. Stay tuned for Part 2 

Tuesday, August 5, 2025

Takeshi Shudo's Pokemon World

Takeshi Shudo, Chief Creative and Head Writer for the Pokemon Anime from The Very Beginning up until 2002 (the first 5 seasons). During that time, Shudo created 2 light novels that were based on His Idea on how the Pokemon Anime Should be, Ideas that were rejected by the Producers.

To say that he wasn't thrilled was an understatement, but he begrudgingly went along with what his Superiors asked of him, after all, it was best for business, whether he liked it or not. It was a Team effort, and Shudo realized that he had to be a team player. 

Shudo had a quite a history of substance use (tranquilizers, mostly) and alcohol-ism, coupled with constant depression that he never got treatment for. He would write his scripts and characters while either drunk or high, and mentioned that the booze and tranquilizers got his creative juices flowing, but he knew not to overdo it. Despite this, though, Shudo would be hospitalized many times during his time as Head Writer and Chief Creative. 

Speaking of Creative Writing, Shudo had a tendency to create his characters by forms of method acting, in which he would speak in various different mannerisms and personalities while working. 

Shudo would quit the Creative and relinquished his roll as Head Writer, sometime after his idea and script for the 3rd Movie were shot down, that was the last straw for Him. 

In 2008/2009, Shudo created a blog, which talked about his life, as well as Ideas he had for the Pokemon Anime and Movies. 

In 2010, He collapsed in a train station and died due to a brain hemorrhage at 61. 

And that's an abridged description on Who Takeshi Shudo was. With that out of the way, Let's dive into His Version of The Pokemon Anime World. 

Well, for starters, Takeshi Shudo's version of the World was way darker and more screwed up (but still fascinating).

10-Year-Old were considered Legal Adults, and could do Everything Adults can do And have All of the responsibilities that an Adult has. On the other side of that spectrum, 40-Year-Olds are legally considered to be Senior Citizens, and be treated as such.      

This is Not my Favorite part of Shudo's Vision...in fact, I think it's stupid and pedo. But It Does raise a question? If 10-Year Olds are considered to be Adults, does that mean 6 to 8-Year Olds are considered to be Young Adults?

Anyway, moving on, If a Gym Leader Loses 5 Pokemon Battles in a row, they are Fired from their Job. And in order to keep employment, Gym Leaders are forced to Bribe Challengers into letting them win. This explains Why Misty's Sisters refused to Fight and Why Lt. Surge was so damn Brutal.

The Pokemon League seem to to be totally incompetent in these novels, because if a Gym Leader loses their Job, which likely is their Livelihood, the League would have to find New Gym Leaders. And what if they run out of Competent Leaders to find? And What about the Indigo Tournament?

If A Gym Leader never losses, then the Tournaments are gonna be bare, due to the lack of fresh participants. And since he Pokemon Master Test and the Pokemon School/Academy doesn't seem to exist in Shudo's World, earning Gym Badges is the only way to qualify for the Tournament.

And what about the fired Gym Leaders? What are They gonna do after they are fired? As for most, being a Gym Leader Is their livelihood. They'd be out of work and unable to provide for themselves and their families. So, unless they have relatives who run businesses, they're out of luck. The only thing left is to turn to crime or even join Team Rocket, due to the strict requirements for jobs in This World. This situation is made Even Worse for the Males.

Speaking of.. Nearly all the Male trainers in the World who have failed miserably And have no family owned businesses, are forced into a life of crime, due to having little to no employable skills. This leaves most of the jobs to the Women,who are considered to be more capable than Men. 

Segueing to the next Factoid... The Officer Jenny's (Junsa in Japan) are a family that represent the region's entire Police Force, even though their number are kinda low to be considered a proper Police Force. Thankfully, they are more than competent and fit enough to do the job. Also, Jenny is their Family name, Not their First name.

On a related note, Nurse Joy is a Doctor, instead of a nurse. And is in the same situation as the Jenny's. (ie. a family of Pokemon Doctors with the Surname of Joy.) 

While we're still talking about the Jenny's. Pallet Town doesn't have any, being deemed too small and too broke to have a police presence. Instead, volunteers patrol the town.

And while we're on the subject of Pallet Town... It's poverty-stricken. That's right, it's a Broke Town, with with few jobs or any access for the residents to better themselves. Most Pallet Residents try and fail to make it as Pokémon Trainers.

The only Trainer from Pallet who even made it into the Top 1000, was hailed a Hero, due to being the Only one in town to achieve it. Everyone else, including Ash's Own Father and Grandfather, barely managed to crack the top 5000. 

BTW, The Man who achieved the Top 1000 (ranked #931) was Professor Oak's ancestor, Pallet Oak, who was not only hailed a Hero, but was also named Mayor AND Had the Town named after him. Because of this, both Ash and Gary want to do even better, so that the Town can be renamed after them.   

Those who fail, of course, end up turning to lives of crime to survive...especially the Boys and Men.    

And another thing, every Parent in Town, except for Delia, is a total loser and jerkass. Though even She has her issues. 

Moving away from Pallet Town. Generally and Culturally, leaving home to become a Trainer is considered taking full responsibility for your own life and turning your back on your home for good. This is why most Trainers who fail never come home, as they haven't got one anymore. 

Pewter City Museum has no weekend traffic and makes up for its lack of major exhibits with whatever they've dug up, from crystals to lumps of coal.

The origins of Pokemon would've been vaguely explained. Pokemon would've just appeared one night after the other.   

Most Characters of the Day from the Anime do not appear in the Novels and the Viridian Forrest Samurai is just a Bug Catcher.

Shudo had 3 Endings planned for the Anime 1 - A Pokemon Rebellion,lead by Pikachu and Meowth after the Mon are convinced that Humans were just using them as slaves. This would eventually lead to Ash realizing that he had Zero Idea as to What a Pokemon Master really was and then realizes that his Dream to become one was all for naught. 

2 - Fast Forwarding to Ash as an Very Old Man, who was recalling the Adventures that he had and Friendships that he made, right before dying, only to be woken up by his Mother as a 10-year old, ready to start his Pokemon journey.

And 3 - Mewtwo Strikes Back 

The 1st 2 planned endings would've Only worked if the Entire Anime was going to end. Planned Ending 1 especially would make it almost impossible for More Seasons to be created.  It's also worth noting that the Anime was Only gonna last 1 Season. But due to the Anime's jolt in popularity, it was decided that the Series would continue. 

With his endings shot down and the plan to continue the Anime past Kanto in the works, Shudo planned on having the Series grow with it's Audience and be maturer and maturer each Season, complete with Different Main Characters and Villains for each of the Seasons. 

As usual, the Producers hated the idea, wanting the Pokemon Anime to gain a New Audience of Youngsters with each Season, instead of just catering to the same ones who grew up with the Anime.

This is something I also agree with, as having the Series become more and more mature would alienate a whole future generation of young Pokemon Fans. After all, The franchise, as a whole, was /is supposed to be mainly targeted towards kids.  

Pokémon went on a four-month hiatus after the "Electric Soldier Porygon" incident, where thousands of Japanese Kids were hospitalized with seizures thanks to one scene in the episode. This was because the producers needed to investigate and revise the guidelines on what animation techniques were appropriate for television viewing, especially for kids. 

This event would be known as Pokemon Shock and thanks to it, the episode "Electric Soldier Porygon" was never re-aired Or broadcast in other countries.

One of Takeshi Shudo's blogs revealed that there would have been an anime episode prior to the movie where Ash and Mewtwo crossed paths, but the four-month hiatus brought on by Pokemon Shock put an end to that. Now, let's talk about the Movies Shudo wrote.

The Original idea for the 1st Movie, Mewtwo Strikes Back, was for Mewtwo to be a Villain who wanted revenge against Ash, but again, thanks to Pokemon Shock, and the Episode where Ash and Mewtwo meet getting scrapped, this plan had to be changed. The 2nd Idea was to have Mewtwo still be a Villain, but one who wanted to overthrow Humanity and rule a World of just Pokemon. 

Needless to say, Takeshi Shudo Hated that idea and rewrote the script to be much deeper....behind his Superiors backs, thanks to them being too busy dealing with ways to prevent another Pokemon Shock. 

According to His blog, Takeshi Shudo intended for Mew to be "violent and unpredictable", and was angered that humans created a clone of it. It was also revealed that Mew was intended to have a speaking role, but that was changed in later script revisions. Mew picking a fight with Mewtwo in the Final Film still conveys this sentiment.

As I stated earlier, Mewtwo Strikes Back was gonna be the finale of the Anime, but this was vetoed and turned into just a continuation of Ash's Adventures. One has to wonder what the movie would've been like had Pokemon Shock never happened? Or had the Producers Greenlit Shudo's idea for the Alternate Ending? Like with How many licks I'd take to get to the center of a Tootsie Pop... The World may Never know. Onward to the Next Movie, The Power of One.    

Takeshi Shudo's first draft for the 2nd movie, The Power of One, did not feature Ash, Team Rocket, or any of the supporting characters from the Anime at all. It was only at the urging of the higher-ups that he added them in later drafts of the script. Who would've replaced the Main Characters is a Mystery, as Shudo never really told us.

Shudo also created Lugia, solely for this Movie and future movies. He was shocked when Nintendo and Gamefreak added it to the games. Shudo also intended Lugia to be Female as the Maternal Goddess of the Sea. He was pissed when he found out that not Only was Lugia given a Male Voice in the Movie, but was also made Genderless in the games.

Shudo's original script for the 3rd movie was about a T-Rex fossil on a rampage which also addressed the idea of real animals in the Pokémon World. It was rejected because, according to the suits, a story where a bunch of minerals that gain consciousness and comes to life wouldn't be a hit. And they wanted the Movie to be a Major Hit. 

The early "Rampaging Dino Fossil" script had an entirely different story addressing the question of, "What happened to real animals in the Pokemon world". 

So, it went like this, after the discovery of a fossilized Tyrannosaurus Rex. Real animals would have been established to have existed (complete with photographs), yet no-one alive remembers seeing any. While the fossil is being studied, it comes to life and starts rampaging across the region, eventually hitting Pallet Town and Team Rocket's base. The Movie would've had Ash's Team, Team Rocket and Every Kanto Pokemon, sans Mew and Mewtwo, Ho-Oh, and Lugia team up to try to stop the Rampaging Fossil.

Where the Fossil would've ended up is a mystery, as Shudo intended to reveal it in a future Blog Post, which never happened, due to his death.

Personally, I'm intrigued on what this Alt-Pokemon 3 would've been like had it been made. Anyway, on to the creation of the Real Pokemon 3 - Spell of the Unown.

Shudo was hospitalized during the production of the 3rd movie, know known as The Spell of the Unknown. Though he recovered, he didn't feel like going back to working on it, so he asked Hideki Sonoda to finish writing the story.

Upon finding out the woman who shows up during the credits was supposed to be Molly's real mother, who was just in the hospital and not dead, Takeshi was outraged. He felt that this went against the story he was originally writing. As a result, he never wrote another Pokémon movie after this.

Y'see, Shudo felt that the relationship between a Father and a Daughter was something the media never focused too much on and so wrote the Movie with his daughter, Mii in mind (who was born when he was 45). He added the character Mii/Molly as a tribute and gift for his own Daughter, as he had serious doubts about his health and felt that he could die at any day.  

Another reason why Shudo hated the change was because Shudo's Own mother died in the hospital and felt that the change from The Mother being dead to the Mother being hospitalized, ruined the Father/Daughter connection.        

And like I stated, He was so Angry and frustrated, he never wrote another Pokemon Movie Again. Alright, on to the 4th Movie. 

The 4th Movie's plot, as we know it, wasn't supposed to exist at all, but thanks to the Producers deciding at the last minute that Celebi should be in the movie instead of the Anime, Sans the GS Ball.  

In the Anime, The GS Ball was originally supposed to be opened and contain a Celebi, which would then have its own story arc. But, the Producers decided to use Celebi in 4th Pokemon Movie instead....Sans the GS Ball! 

Though the GS Ball subplot ended up being dropped completely without a conclusion. It would be featured in the Japanese version of Pokemon Crystal, and eventually be made available worldwide in the Virtual Console version.

Takeshi Shudo had very little to do with this Movie, but it Did make a major change to one his Anime Story Arcs - the GS Ball Sidequest. Shudo was upset at his Superiors for forcing the Saga to end prematurely without a conclusion.  

Rumor has it that Movie 4 was gonna implement Shudo's 1st Ending, where the Pokemon rebelled against Humanity after being convinced that they were being used as the Human's slaves. Of course, this was before the decision to make the movie about Celebi (without the GS Ball). 

A 3rd novel was in the works, but Shudo died before he could complete it. 

Now, for some Shudo-verse Character Tidbits.

Ash Ketchum / Satoshi

- Acts fanboyish towards Pinsir, a trait not found in the anime version.

- He's ten-going-on-eleven when he starts his Pokémon journey. However, in his society, he's considered an adult. 

- He loves his Momma. 

- His father left when Ash was a baby to become a Pokemon trainer.
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Pikachu

- If Pikachu evolves into Raichu too quickly, the power boost would give it a heart attack.  

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Delia Ketchum  / Hanako

- She isn't even 30 and has a nearly 11 year old son.

- She's a minor character in the Kanto arc of the Anime and is just "Ash's mother", but here's she's given a backstory.

- Her father went on a Pokémon journey when she was a child and never returned.

- Delia is mentioned to usually wear miniskirts, while in the show she wears a longer, regular skirt.

- Though not completely contradictory, Pokémon 3 implies that Delia has a different backstory in the anime. It's mentioned that she was Professor Oak's student once, with no mentions of her restaurant from the books.

- Delia often gets mistaken for her son's older sister.

- The books go into depth on her more than the actual anime. It's also mentioned that, though she loves her son, she was happy to have him out of the house so that she can relive her youth. She also has severe issues with the abandonment by both her husband and her father

.- Even though she wanted her son to go on his journey as soon as possible so that she could relive her youth. She still loves him very much but she's clearly enjoying her independence as much as he's enjoying his.

- She's hiding more troubles than she appears to be, unlike her Anime counterpart. 

- She became pregnant with Ash around age 18. 

- At age 17, she was featured on the cover of a adult targeted magazine called Pokémon Pals, becoming both a symbol of pride for the remote and ignored Pallet Town as well as being far too good for the men of Pallet Town after such recognition. 

- She owns a restaurant, which she never has in the Anime.  :
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Ash's Father 

- He left on a Pokémon journey one day and hasn't called his family since.

- He married Delia as a teenager, not long after meeting her. He later wanted to go on a Pokémon Journey so he abandoned his wife and young son.

- He isn't given a name.
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Gary Oak / Shigeru Ookido 

- It is implied that Gary's attitude is a result of feeling pressure to live up to his family's accomplishments. He descends from the greatest Trainer in the history of Pallet Town.

- The Cheerleaders he has were hired by his Father, who's the Mayor of Pallet Town, to give his son more encouragement.

- Gary's Dad is Pallet Town's Mayor. 
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Misty / Kasumi 

- Misty Holds her father in high regard, despite the fact that both he and her mother abandoned her and her three sisters.

- Misty's sisters have darker red hair naturally and their multi-colored hair are just wigs.

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Brock / Takeshi

Brock has 20 different siblings, as apposed to 9 in the anime. He's gone through nine different dads because his mother had married various men, unlike the anime where he and his siblings share the same parents.

- He never uses Geodude and never catches Zubat.

- He hits on any girl he thinks is pretty, even Misty. In the Anime, he only flirts with girls and women who are either older or the same age as him, and he never hits on his traveling companions.

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James / Koujiro 

- Everytime James hears an expression or figure of speech, he needs to look it up.

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Jessie / Musashi 

- Jessie had a mother, who was a high ranking member of Team Rocket, thus why she's a member too.

- Unlike Ash's and Gary's Fathers, Jessie's Mother has a name - Miyamoto.

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Meowth / Nyarth 

-Besides the Human Language (Japanese), Meowth can also speak and understand various Pokemon Languages too

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Giovanni / Sakaki

- Giovanni's Mother was the Original Leader of Team Rocket, before he took over.

- His Mother is/was known Only as Madam Boss.

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The Narrator 

- He's snarky in these Novels.

- He's rumored to be Takeshi Shudo himself. 

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Now it's time for some Wild Mass Guessing, where I give my own theories about the Rest of Takeshi Shudo's Pokemon World that was never revealed.

Note: Since Shudo only did the Original Series (which covers kanto through johto), I'll only be focusing on that. 

Note: These guesses are in NO WAY Word of God and are just Theories, Theories that Could be Proven False later.

Since the 2nd Light Novel ended with Ash defeating Lt. Surge for the Thunderbadge, I'll start these theories with the St. Anne/SS Anne episode. In Shudo's Novels, it is said that many young Men and Women (mostly men) who fail at being Pokemon Trainers and have no means of getting a Job, turn to crime. Well my theory is that when Ash and his Team encounter the Greater Team Rocket, they recognize some of the Grunts as Old Friends and Acquaintances.

Giovanni would've acted much Much more like a Yakuza Head than in the Main Anime.

Brock would've attempted to flirt with Erika and then, Sabrina. Erika would've shot him down and Sabrina, thinking that Brock's advances as sheer stupidity, would've actually hurt him. Brock never flirts with them in the Anime Proper.

Speaking of Sabrina, She would've been much more Dangerous and much Creepier than she was in the Anime.

And due to that dumb "Fired After 5 Loses in a Row" rule for the Gym Leaders, it would've explained Why Erika has such strict standards for Challengers, Why Sabrina is downright Mean and Scary, Why Koga's Gym if full of Dangerous Traps, and Why Blaine hid his Gym in a Volcano, only allowing Trainers who pass his test to Challenge Him. They didn't want to lose their livelihoods, so they needed to take precautions. None this is explained in the Anime. 

As for Giovanni, he likely didn't care too much about losing his Gym License, as he was the head of the biggest Crime Organization in The Joint Kanto-Johto Regions....and possibly the richest. 

Speaking of, It might have been revealed that the Viridian City Gym would've been used as one of Many Rocket-Owned Business. Or even a front for one of their HQs. Maybe Both. Again, Why Team Rocket Owns an Official Gym goes unexplained in the Anime.

I doubt, I may be in the wrong here, that The Rocket Duo, Cassidy and Butch, would've been featured in the Novels.

The Rocket Trio's backstories Would've been explained a bit more than what was seen or told in the Anime. Shudo liked the Rocket Trio more than any other Antagonist in the series, so this would've made sense.

My guess is that Jessie was abandoned by her Mother at age 10,so that she could provide a better life for her by joining Team Rocket, eventually becoming a Top Agent. Jessie would've then later joined Team Rocket to follow in her Mother's footsteps.

James's parents, like in the anime, were oppressive toward their son. So He ran away to join Team rocket, where Jessie, already a member, would've taken a liking to James and would've convinced Giovanni to let him join.

As for Meowth, his backstory would've remained the same as in the Anime, except he would've fathered a Bastard Meowth with ,his then girlfriend, Meowsie.

Whether or not Brock would've perused a career in Pokemon Breeding in these Novels is anyone's guess, as Shudo never really mentioned it. I'd like to think that he still does.      

I'd like to think that the Indigo Tournament, had Shudo reached that point in his Novels, would've been the same in the Anime, but Ash and Gary would've taken their losses harder, due to the current situation in Pallet Town (mentioned above).

However, for Gary, I'd imagine he'd go into Politics and join the Oak Political Dynasty, or at least become a Pokemon Researcher, following in his Grandfather's Footsteps, like he did in the Anime.

While Ash would consider joining Team Rocket, though he would be convinced by Prof. Oak, Delia, and His Friends not to. Plus, Oak would tell Ash that by coming in 16th at the Tournament, he did better than Any Pallet Town Trainer..including Pallet Oak, His Father, and Grandfather. And with that, Ash would be encouraged to continue his Pokemon Journey.

Now for some Orange Islands Saga Theories. I believe that Tracy Sketchit would've been a bit more perverted, when he's sketching girls and women that he thought were pretty, he draws them in a very mature way. This Is Takeshi Shudo's World, after all.

In the Actual Anime, Tracy's perverted tenancies are way way more subtle, as when he sketches women and girls, he draws them as is. 

The GS Ball Quest would've started here, just like the Anime, with Prof. Ivy giving the GS Ball to Ash and Co. Speaking of Prof. Ivy, She would've likely been very flirtatious in these Novels, very much unlike her Anime Counterpart. Again, Welcome to Shudo's Pokemon World. 

Misty would've develop more of a Girl-Crush on Lorelei (Kanna) than what was depicted in the Anime. I believe Shudo would've done this too.

Now for some Johto Theories. It would've been revealed that the Reason Brock left Professor Ivy was due to the fact that she was either a Married Woman Or a Lesbian....maybe. This is just a widespread Theory, which may or may not be fact. In the Anime, it was never explained Why Brock left Prof. Ivy.

Speaking of Brock, I wager that in Shudo's Johto Saga, He would hit on The 3 Female Johto Gym Leaders in a more adult way. This is how Shudo envisioned The Character, after all.

As stated earlier, The GS Ball Quest Was gonna have a definitive conclusion near the end of the Johto Saga of the Anime, which it would've been revealed that the GS Ball would've contained Celebi. Well, here's how I'd think this abandoned Arc would've been:

Kurt gives Ash and Co the GS Ball back and there would be a reveal that it contains Celebi. Team Rocket finds out about it and plans on stealing the Ball, unleash Celebi, and use it's powers to take over the World.. This would've been the Anime debut of the Rocket Execs from Gold and Silver. The Arc would end with the Rockets arrested (though not the main trio) and Celebi roaming free. 

Again, this is me Wild Mass Guessing on how the Episode might have gone, had the Show's Producers  decided to give the GS Ball Quest an ending, instead of just leaving it incomplete.

It is unknown if Shudo would've implemented one of his 2 planned ending for these Novels.

Now, everyone is wondering about The Elite 4 and Johto Gym Leaders? Well, as far as the Elite 4 goes, Shudo himself never really said anything about any penalties for them if they lose. So there's that.

As for the Johto Gym Leaders? There's evidence to suggest that Shudo abandoned his infamous "5 Losses And You're Fired" Rule for the Gym Leaders after the Kanto Saga, as the Johto Gym Leaders are a bit more chill than their Kantonian Counterparts and don't seem to mind losing. 

So I figured that instead of the Johto Leaders being Total Retards, that stupid Shudo rule was thrown out before the start of the Johto Saga, 

And that's all I got for these Theories. Theories that show how things Might have been, had Takeshi Shudo lived and made more light Novels (not to mention finishing and publishing his 3rd one).         

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For more Info on Shudo's Works. Please go  to the following addresses: https://pokemonthenovel.dreamwidth.org/380.html and https://lavacutcontent.com/takeshi-shudo-ending-pokemon/

That was a completely interesting romp, wouldn't ya say. Well, that's it for now. So, Until Next Time, Punch a Nazi, Kick a Commie, Resist Modern Attitudes, and Stay Gold!  

R.I.P.

Takeshi Shudo

8/18/1949 - 10/29/2010 

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