Editing Dreamcast (section)

=== Background ===
In 1988, Sega released the [[Sega Genesis|Genesis]] (known as the Mega Drive in most countries outside North America), in the [[fourth generation of video game consoles]].<ref name="Retroinspection">{{cite magazine |last=Sczepaniak |first=John |date=August 2006 |title=Retroinspection: Mega Drive |url=https://archive.org/details/retro_gamer/RetroGamer_027/page/42/mode/2up |magazine=[[Retro Gamer]] |publisher= |issue=27 |pages=42–47}}</ref> It became the most successful Sega console ever, at 30.75 million units sold.<ref name="Routledge">{{cite book|last=Ernkvist|first=Mirko|title=The Video Game Industry: Formation, Present State, and Future|chapter=Console Hardware: The Development of Nintendo Wii|publisher=[[Routledge]]|year=2012|isbn=978-1138803831|page=[https://www.google.com/books/edition/The_Video_Game_Industry/lgiQNdc-DOwC?hl=en&gbpv=1&bsq=158 158]|quote="&nbsp;... all [figures] from [[Computer Entertainment Supplier's Association|CESA]] [[white paper]]."}}</ref> Its successor, the [[Sega Saturn|Saturn]], was released in Japan in 1994.<ref name="Saturn">{{cite web|title=Sega Saturn|url=http://sega.jp/fb/segahard/ss/|url-status=live|archive-url=https://web.archive.org/web/20140716103105/http://sega.jp/fb/segahard/ss/|archive-date=July 16, 2014|access-date=March 3, 2014|publisher=[[Sega]]|language=ja}}</ref> The Saturn is [[CD-ROM]]-based and has [[2D computer graphics|2D]] and [[3D computer graphics|3D]] graphics, but its complex dual-[[Central processing unit|CPU]] architecture was more difficult to program than its chief competitor, the [[Sony]] [[PlayStation (console)|PlayStation]].<ref name="IGN History of Dreamcast"/> Although the Saturn debuted before the PlayStation in Japan and the United States,<ref name="Finn">{{cite book|author-last=Finn|author-first=Mark|editor-last=Mäyrä|editor-first=Frans|title=Computer Games and Digital Cultures: Conference Proceedings: Proceedings of the Computer Games and Digital Cultures Conference, June 6-8, 2002, Tampere, Finland|chapter=Console Games in the Age of Convergence|publisher=Tampere University Press|year=2002|isbn=9789514453717|pages=45–58}}</ref>{{sfn|Kent|2001|pages=502, 516}} its surprise US launch, four months earlier than scheduled,<ref>{{cite web|last=Cifaldi |first=Frank |url=http://www.1up.com/news/day-history-sega-announces-surprise |archive-url=https://archive.today/20130629122913/http://www.1up.com/news/day-history-sega-announces-surprise |archive-date=June 29, 2013 |title=This Day in History: Sega Announces Surprise Saturn Launch |website=[[1UP.com]] |date=May 11, 2010 |access-date=December 10, 2016 |url-status=dead}}</ref>{{sfn|Kent|2001|pages=516–517}}{{sfn|DeMaria|Wilson|2004|page=282}} distribution was limited to four retailers due to a lack of supply, which "aggravated" other retailers.  Developers also found it easier to program for the Playstation, which caused a loss of support from these game developers.<ref name="Schilling">{{cite journal|last=Schilling|first=Mellissa A.|title=Technological Leapfrogging: Lessons From the U.S. Video Game Console Industry|journal=[[California Management Review]]|volume=45|number=3|date=Spring 2003|page=23|doi=10.2307/41166174|jstor=41166174|s2cid=114838931}}</ref> Losses on the Saturn{{sfn|Kent|2001|page=532}} contributed to financial problems for Sega, whose revenue had declined between 1992 and 1995 as part of an industry-wide slowdown.<ref name="Finn" /><ref name="Innovation and competition">{{cite journal |last1=Gallagher |first1=Scott |last2=Park |first2=Seung Ho |date=February 2002 |title=Innovation and Competition in Standard-Based Industries: A Historical Analysis of the U.S. Home Video Game Market |journal=[[Institute of Electrical and Electronics Engineers|IEEE Transactions on Engineering Management]] |volume=49 |pages=67–82 |doi=10.1109/17.985749 |number=1}}</ref>{{sfn|Kent|2001|pages=500, 508, 531}}

Sega announced that [[Shoichiro Irimajiri]] would replace [[Tom Kalinske]] as chairman and CEO of Sega of America,{{sfn|Kent|2001|page=535}}<ref name="M2 Press" /><ref name="Kalinske out">{{cite web |date=July 16, 1996 |title=Kalinske Out - WORLD EXCLUSIVE |url=http://www.next-generation.com/news/071696a.html |url-status=dead |archive-url=https://web.archive.org/web/19961220200643/http://www.next-generation.com/news/071696a.html |archive-date=December 20, 1996 |access-date=May 6, 2014 |website=[[Next Generation (magazine)|Next Generation]] |publisher=}}</ref> while [[Bernie Stolar]], a former executive at [[Sony Computer Entertainment]] of America,<ref name="Newsflash">{{cite web |date=July 13, 1996 |title=NEWSFLASH: Sega Planning Drastic Management Reshuffle - World Exclusive |url=http://www.next-generation.com/news/071396a.html |url-status=dead |archive-url=https://web.archive.org/web/19961220200717/http://www.next-generation.com/news/071396a.html |archive-date=December 20, 1996 |access-date=May 6, 2014 |website=[[Next Generation (magazine)|Next Generation]] |publisher=}}</ref>{{sfn|Kent|2001|page=558}} became Sega of America's executive vice president in charge of product development and third-party relations.<ref name="M2 Press">{{cite news|title=Sega of America appoints Shoichiro Irimajiri chairman/chief executive officer |work=M2PressWIRE |publisher=M2 Communications, Ltd. |date=July 16, 1996 |url=http://www.m2.com/m2/web/story.php/1996852568440080DDE88025683B005E7A3F |quote=Sega of America Inc. (SOA) Monday announced that [[Shoichiro Irimajiri]] has been appointed chairman and chief executive officer. In addition, Sega announced that Bernard Stolar, previously of Sony Computer Entertainment America, has joined the company as executive vice president, responsible for product development and third-party business&nbsp;... Sega also announced that Hayao Nakayama and David Rosen have resigned as chairman and co-chairman of Sega of America, respectively. |url-status=live |archive-url=https://web.archive.org/web/20141018032603/http://www.m2.com/m2/web/story.php/1996852568440080DDE88025683B005E7A3F |archive-date=October 18, 2014 |url-access=subscription}}</ref><ref name="Kalinske out" /> After the 1996 launch of the [[Nintendo 64]], sales of the Saturn and its software fell sharply. As of August 1997, Sony controlled 47 percent of the console market, [[Nintendo]] controlled 40 percent, and Sega controlled only 12 percent; neither price cuts nor high-profile games helped the Saturn.{{sfn|Kent|2001|page=558}} {{Quote box
| quote = I thought the Saturn was a mistake as far as hardware was concerned. The games were obviously terrific, but the hardware just wasn't there.
| source = —Bernie Stolar, former president of Sega of America, in 2009<ref name="IGN's History of Sega">{{cite web |author=Fahs, Travis |date=April 21, 2009 |title=IGN Presents the History of Sega |url=https://ign.com/articles/2009/04/21/ign-presents-the-history-of-sega?page=1 |url-status=live |archive-url=https://web.archive.org/web/20141031060740/http://www.ign.com/articles/2009/04/21/ign-presents-the-history-of-sega?page=1 |archive-date=October 31, 2014 |access-date=October 31, 2014 |website=[[IGN]]}}</ref>
| width = 30em
}}
[[Hayao Nakayama]] resigned as president of Sega in January 1998 in favor of Irimajiri,<ref name="NYT">{{cite news |last=Strom |first=Stephanie |date=March 14, 1998 |title=Sega Enterprises Pulls Its Saturn Video Console From the U.S. Market |work=[[The New York Times]] |url=https://www.nytimes.com/1998/03/14/business/international-business-sega-enterprises-pulls-its-saturn-video-console-us-market.html?pagewanted=1 |url-status=live |access-date=January 2, 2010 |archive-url=https://web.archive.org/web/20130430012902/http://www.nytimes.com/1998/03/14/business/international-business-sega-enterprises-pulls-its-saturn-video-console-us-market.html?pagewanted=1 |archive-date=April 30, 2013}}</ref> and Stolar acceded to become CEO and president of Sega of America.{{sfn|Kent|2001|page=558}}<ref>{{cite web|last=Feldman|first=Curt|url=http://www.gamespot.com/articles/katana-strategy-still-on-back-burner/1100-2463564/|title=Katana Strategy Still on Back Burner|website=[[GameSpot]]|date=April 22, 1998|url-status=live|access-date=December 9, 2014|archive-url=https://web.archive.org/web/20170705034437/https://www.gamespot.com/articles/katana-strategy-still-on-back-burner/1100-2463564/|archive-date=July 5, 2017}}</ref> Following five years of generally declining profits,<ref name="1998 report"/> in the fiscal year ending March 31, 1998, Sega suffered its first parent and consolidated financial losses since its 1988 listing on the [[Tokyo Stock Exchange]],<ref>{{cite web |date=March 18, 1998 |title=Sega News From Japan |url=http://www.gamespot.com/articles/sega-news-from-japan/1100-2462352/ |url-status=live |archive-url=https://web.archive.org/web/20170705034437/https://www.gamespot.com/articles/sega-news-from-japan/1100-2462352/ |archive-date=July 5, 2017 |access-date=December 7, 2014 |website=[[GameSpot]]}}</ref> reporting a consolidated net loss of {{¥|35.6 billion|link=yes}} ({{US$|269.8 million}}).<ref name="1998 report">{{cite web |title=Sega Enterprises Annual Report 1998 |url=http://sega.jp/IR/en/ar/ar1998/ar98.pdf |url-status=dead |archive-url=https://web.archive.org/web/20040504003308/http://sega.jp/IR/en/ar/ar1998/ar98.pdf |archive-date=May 4, 2004 |access-date=December 7, 2014 |publisher=[[Sega]] |pages=1, 7–8}}</ref> Shortly before announcing its financial losses, Sega announced the discontinuation of the Saturn in North America to prepare for the launch of its successor.{{sfn|Kent|2001|page=558}}<ref name="NYT" /> This effectively left the Western market without Sega games for more than a year.<ref name="IGN History of Dreamcast">{{cite web |last=Fahs |first=Travis |date=September 9, 2010 |title=IGN Presents the History of Dreamcast |url=https://ign.com/articles/2010/09/10/ign-presents-the-history-of-dreamcast |url-status=live |archive-url=https://web.archive.org/web/20140928201508/http://www.ign.com/articles/2010/09/10/ign-presents-the-history-of-dreamcast |archive-date=September 28, 2014 |access-date=October 31, 2014 |website=[[IGN]]}}</ref> Rumors about the upcoming Dreamcast—spread mainly by Sega—leaked to the public before the last Saturn games were released.{{sfn|Kent|2001|page=559}}