Editing Sega (section)

===Origins (1945–1989)===
Sega was founded in 1940 as '''Standard Games''' (later Service Games) in [[wikipedia:Honolulu|Honolulu, Hawaii]], United States,<ref name="Segacorphist">{{Cite web |url=http://www2.sega.com/corporate/corporatehist.php |title=Corporate History |date=1999 |work=[[Sega/Sega of America|Sega of America]] |archiveurl=http://web.archive.org/web/20081220144004/ttp://www2.sega.com/corporate/corporatehist.php |archivedate=20 December 2008 |accessdate=5 August 2018}}</ref> by Marty Bromely, Irving Bromberg, and James Humpert <ref>{{Cite book |last1=Loguidice |first1=Bill |author-link1=https://www.google.co.id/search?hl=id&tbo=p&tbm=bks&q=inauthor:"Bill+Loguidice" |last2=Barton |first2=Matt |author-link2=https://www.google.co.id/search?hl=id&tbo=p&tbm=bks&q=inauthor:"Matt+Barton" |date=24 February 2014 |title=Vintage Game Consoles: An Inside Look at Apple, Atari, Commodore, Nintendo, and the Greatest Gaming Platforms of All Time |publisher=CRC Press |page=169 |isbn=1135006504}}</ref> to provide coin-operated amusements for American servicemen on military bases. Bromely suggested that the company move to Tokyo, Japan in 1951 and in May 1952 "'''Se'''rvice '''Ga'''mes of Japan" was registered.

In 1954, another American businessman, David Rosen, moved to Tokyo and established the company Rosen Enterprises, Inc., in Japan to export art. When the company imported coin-operated instant photo booths, it stumbled on a surprise hit: the booths were very popular in Japan. Business was booming, and Rosen Enterprises expanded by importing coin-operated electro-mechanical games.

Rosen Enterprises and Service Games merged in 1965 to create Sega Enterprises. Within a year, the new company released a submarine-simulator game called ''Periscope''<ref>{{Cite web |url=http://www.arcade-history.com/?n=periscope&page=detail&id=14579 |title=Periscope <nowiki>[</nowiki>Coin-Op<nowiki>]</nowiki> Gun Game by Sega Enterprises, Ltd. <nowiki>[</nowiki>Tokyo, Japan<nowiki>]</nowiki> |work=Arcade History |archiveurl=http://web.archive.org/web/20131102084429/http://www.arcade-history.com/?n=periscope&page=detail&id=14579 |archivedate=2 November 2013 |accessdate=5 August 2018}}</ref> that became a smash-hit worldwide.

In 1969, [[wikipedia:Gulf+Western|Gulf+Western]] purchased Sega, and Rosen was allowed to remain CEO of the Sega division. Under Rosen's leadership, Sega continued to grow and prosper. In 1976, they released a large screen TV, Sega-Vision (not to be confused with their portable media player, Sega Vision).

In the video game arcades, Sega was known for games such as ''[[wikipedia:Zaxxon|Zaxxon]]'', the first game to employ [[wikipedia:axonometric projection|axonometric projection]], and ''[[wikipedia:Hang-On|Hang-On]]'', the world's first full-body-experience video game.

Sega's revenues would hit $214 million by 1982 and in 1983,<ref name="Segacorphist"/> Sega would release its first video game console, the [[Wikipedia:SG-1000|SG-1000]], the first 3D arcade video game, ''[[wikipedia:SubRoc-3D|SubRoc-3D]]'', which used a special periscope viewer to deliver individual images to each eye, and the first laser-disc arcade game, ''[[wikipedia:Astron Belt|Astron Belt]]''.

In the same year, a number of events led to a change of ownership at Sega. Longtime G+W chairman Charles Bluhdorn died unexpectedly and was succeeded by [[Paramount Pictures]] executive Martin S. Davis, who wanted to prioritize units that were key to the conglomerate's growth, such as the namesake studio, with smaller units like Sega being deemed a drag to G+W's shares.<ref>{{Cite web |url=https://www.nytimes.com/1999/10/06/business/martin-davis-72-created-modern-paramount.html |title=Martin Davis, 72; Created Modern Paramount |publisher=The New York Time |last=Wyatt |first= Edward |date= 6 October 1999 |accessdate=22 April 2022}}</ref> Additionally, the [[wikipedia:video game crash of 1983|video game crash]] in North America dealt a major hit to Sega's revenues, leading to Rosen resigning under pressure by the end of the year. In 1984, in two separate deals, G+W sold the U.S. assets of Sega - primarily their arcade manufacturing and amusement division - to pinball manufacturer [[wikipedia:Bally Technologies|Bally Manufacturing Corporation]], while the Japanese assets of Sega - consisting of the company's research & development teams and the video game archive - were purchased for $38 million by a group of investors led by Rosen and Hayao Nakayama, a Japanese businessman who owned Esco Boueki (Esco Trading) an arcade game distribution company<ref>{{Cite web |url=http://www.nytimes.com/1993/07/04/business/sega-takes-aim-at-disney-s-world.html?pagewanted=4 |title=Sega Takes Aim at Disney's World (Page 4 of 4) |publisher=The New York Times |last=Pollack |first=Andrew Sunday |date=4 July 1993 |archiveurl=http://web.archive.org/web/20130502234210/http://www.nytimes.com/1993/07/04/business/sega-takes-aim-at-disney-s-world.html?pagewanted=4 |archivedate=2 May 2013 |accessdate=10 November 2018}}</ref> that had been acquired by Rosen in 1979. Nakayama became the new CEO of Sega, and Rosen became head of its subsidiary in the United States. As part of the agreements, Bally obtained a two-year right of first refusal to release Sega's games in North America, while Sega obtained a similar license to release Bally's games in Japan for the same time frame.<ref>{{cite web |url=https://archive.org/details/re-play-volume-11-issue-no.-2-november-1985-600DPI/RePlay%20-%20Volume%2011%2C%20Issue%20No.%202%20-%20November%201985/page/168 |title=The Replay Years: Reflections from Eddie Adlum |publisher=RePlay Magazine, via Internet Archive |last= Adlum |first= Eddie |date=November 1985 |accessdate=8 July 2024}}</ref>

The Japanese sale was backed by electronics conglomerate [[wikipedia:SCSK|CSK]]. Upon closing of the deal, Sega Enterprises was renamed Sega Enterprises Ltd., moved its headquarters to Japan, and two years later, began trading its shares of stock in the Tokyo Stock Exchange. David Rosen's friend, Isao Okawa, the chairman of CSK, became chairman of Sega.
In 1986, Sega of America was poised to take advantage of the resurgent video game market in the United States.

Sega would also release the [[Sega Master System]] and the first [[Alex Kidd]] game, who would be Sega's unofficial mascot until 1991 when [[Sonic the Hedgehog]] took over. While the Master System was technically superior to the NES,<ref>{{Cite web |url=http://classicgaming.gamespy.com/View.php?view=ConsoleMuseum.Detail&id=28&game=10 |title=Sega Master System (SMS) - 1986-1989 |work=Classic Gaming Museum |archiveurl=http://web.archive.org/web/20080206180907/http://classicgaming.gamespy.com:80/View.php?view=ConsoleMuseum.Detail&id=28&game=10 |archivedate=6 February 2008 |accessdate=5 August 2018}}</ref> it failed to capture market share in North America and Japan due to highly aggressive strategies by [[Nintendo]] and ineffective marketing by [[wikipedia:Tonka|Tonka]] in the United States. However, it did dominate the European and Brazilian markets until Sega discontinued the system in Europe in 1996, and in Brazil in 2000.