Editing Sega Saturn (section)

==History==
===Background===
In the early 1990s, Sega had success with the [[Sega Genesis|Genesis]] (known as the Mega Drive in most countries outside of North America),<ref name="Retroinspection">{{cite magazine|magazine=[[Retro Gamer]]|title=Retroinspection: Mega Drive|last=Sczepaniak|first=John|issue=27|year=2006|pages=42–47|url=http://www.sega-16.com/2006/09/retroinspection-mega-drive/|access-date=May 1, 2014|archive-url=https://web.archive.org/web/20150924100219/http://www.sega-16.com/2006/09/retroinspection-mega-drive/|archive-date=September 24, 2015|url-status=live}}</ref> backed by aggressive advertising campaigns and the popularity of its ''[[Sonic the Hedgehog]]'' series.{{sfn|Kent|2001|p=431}} Sega also had success with [[arcade game]]s; in 1992 and 1993, the new [[Sega Model 1]] arcade system board showcased [[Sega AM2]]'s ''[[Virtua Racing]]'' and ''[[Virtua Fighter (video game)|Virtua Fighter]]'' (the first [[3D computer graphics|3D]] [[fighting game]]), crucial to popularizing 3D polygonal graphics.<ref>{{cite web |url=http://www.gamespot.com/gamespot/features/video/15influential/p13_01.html |title=''Virtua Racing'' – Arcade (1992) |website=[[GameSpot]] |year=2001 |access-date=June 6, 2014 |url-status=dead |archive-url=https://web.archive.org/web/20100412225953/http://www.gamespot.com/gamespot/features/video/15influential/p13_01.html |archive-date=April 12, 2010 }} cf. {{cite magazine |last=Feit |first=Daniel |url=https://www.wired.com/2012/09/how-virtua-fighter-saved-playstations-bacon/ |title=How ''Virtua Fighter'' Saved PlayStation's Bacon |magazine=[[Wired (magazine)|Wired]] |date=September 5, 2012 |access-date=October 9, 2014 |quote='''Ryoji Akagawa:''' If it wasn't for ''Virtua Fighter'', the PlayStation probably would have had a completely different hardware concept. |archive-url=https://web.archive.org/web/20141014093913/http://www.wired.com/2012/09/how-virtua-fighter-saved-playstations-bacon/ |archive-date=October 14, 2014 |url-status=live }} cf. {{cite magazine|last=Thomason|first=Steve|title=The Man Behind the Legend|magazine=[[Nintendo Power]]|volume=19|issue=205|date=July 2006|page=72|quote='''[[Toby Gard]]:''' It became clear to me watching people play ''Virtua Fighter'', which was kind of the first big 3D-character console game, that even though there were only two female characters in the lineup, in almost every game I saw being played, someone was picking one of the two females.}}</ref><ref name="1UP VF">{{cite web|last=Leone |first=Matt |url=http://www.1up.com/features/essential-50-virtua-fighter |archive-url=https://archive.today/20120719110526/http://www.1up.com/features/essential-50-virtua-fighter |archive-date=July 19, 2012 |title=The Essential 50 Part 35: ''Virtua Fighter'' |website=[[1UP.com]] |year=2010 |access-date=December 10, 2016 |url-status=dead }}</ref><ref>{{cite book|last=Donovan|first=Tristan|title=Replay: The History of Video Games|publisher=Yellow Ant|year=2010|page=267|isbn=978-0956507204|quote=One of the key objections to 3D graphics that developers had been raising with Sony was that while polygons worked fine for inanimate objects such as racing cars, 2D images were superior when it came to animating people or other characters. ''Virtua Fighter'', Suzuki's follow-up to ''Virtua Racing'', was a direct riposte to such thinking&nbsp;[...] The characters may have resembled artists' mannequins but their lifelike movement turned Suzuki's game into a huge success that exploded claims that game characters couldn't be done successfully in 3D&nbsp;[...] Teruhisa Tokunaka, chief executive officer of Sony Computer Entertainment, even went so far as to thank Sega for creating ''Virtua Fighter'' and transforming developers' attitudes.|title-link=Replay: The History of Video Games}}</ref>{{sfn|Mott|2013|pp=226, 250. "''Virtua Racing''&nbsp;[...] was perhaps the first to treat polygons not as a graphical gimmick but as an opportunity to expand the boundaries of traditional driving games&nbsp;[...] It's like witnessing the discovery of fire&nbsp;[...] [''Virtua Fighter''] establish[ed] the template that future 3-D fighters would follow"}}{{sfn|Kent|2001|pp=501–502}}<ref name="Edge VF"/> The Model 1 was expensive, so several alternatives helped bring Sega's newest arcade games to Genesis, such as the [[Sega Genesis#Sega Virtua Processor|Virtua Processor]] chip used for ''Virtua Racing'', and the [[32X]] add-on.<ref name="RetroinspectionSaturn"/>

===Development===
Development of the Saturn was supervised by Hideki Sato, Sega's director and deputy general manager of [[research and development]].{{sfn|Harris|2014|p=386}} According to project manager Hideki Okamura, the project [[codename]]d Saturn started over two years before its announcement at the Tokyo Toy Show in June 1994.<ref>{{cite magazine|title=EGM Interviews SEGA SATURN Product Manager HIDEKI OKAMURA|magazine=[[EGM2]]|issue=1|volume=1|date=July 1994|page=114|quote=Hideki Okamura: [Saturn] was just a development code name for hardware that was adopted by the Japanese development staff. The name has become common knowledge and it has a nice ring to it.}}</ref> It was developed by the same team that developed the [[System 32 (arcade)|System 32]] arcade board.<ref>{{Cite web |last=株式会社インプレス |date=2016-05-23 |title=「Game On」トークイベント「セガハードの歴史を語り尽くす」レポート 歴代セガハードの生みの親が集結した夢のキャスティングが実現！ |url=http://game.watch.impress.co.jp/docs/news/758667.html |access-date=2022-10-15 |website=Game Watch |language=ja}}</ref> Sato regrets that he did not go with the Model 1 arcade hardware as a base, as he was too concerned of leaving all the developers behind that were focused on sprites rather than 3D, which were the majority of developers.<ref>{{Cite web |last=Manson |first=Leonard |date=2021-12-29 |title=New Saturn Development Details: "I Regret Not Basing It On The Model 1". |url=https://www.somagnews.com/new-saturn-development-details-i-regret-not-basing-it-on-the-model-1/ |access-date=2022-10-15 |website=Somag News |archive-url=https://web.archive.org/web/20220127081720/https://www.somagnews.com/new-saturn-development-details-i-regret-not-basing-it-on-the-model-1/ |archive-date=January 27, 2022 |language=en-US}}</ref>

In 1993, Sega and the Japanese electronics company [[Hitachi]] formed a joint venture to develop a new CPU for the Saturn, which resulted in the creation of the "SuperH [[Reduced instruction set computing|RISC]] Engine" (or [[SuperH|SH-2]]) later that year.<ref name="NG February"/><ref>{{cite web|last=Pollack|first=Andrew|url=https://www.nytimes.com/1993/09/22/business/company-news-sega-to-use-hitachi-chip-in-video-game-machine.html|title=Sega to Use Hitachi Chip In Video Game Machine|work=[[The New York Times]]|date=September 22, 1993|access-date=April 15, 2014|quote=Sega Enterprises said today that it would base its next-generation home video game machine, due in the fall of 1994, on a new chip being developed by Hitachi Ltd&nbsp;[...] One Sega official said Hitachi's chip was attractively priced and would be designed with Sega's needs in mind&nbsp;[...] Yamaha is expected to provide sound chips and JVC the circuitry for compressing video images.|archive-url=https://web.archive.org/web/20140418061414/http://www.nytimes.com/1993/09/22/business/company-news-sega-to-use-hitachi-chip-in-video-game-machine.html|archive-date=April 18, 2014|url-status=live}} cf. {{cite magazine|title=Sega to add 64-Bit Processor to New Saturn System!|magazine=Electronic Gaming Monthly|issue=53|volume=5|date=December 1993|page=68|quote=There are reportedly seven different processors in the Saturn. The main processor will be a custom 32-Bit RISC chip under joint development by Sega and Hitachi.}}</ref> The Saturn was designed around a dual-SH2 configuration. According to Kazuhiro Hamada, Sega's section chief for Saturn development during the system's conception, "the SH-2 was chosen for reasons of cost and efficiency. The chip has a calculation system similar to a DSP [<nowiki/>[[digital signal processor]]], but we realized that a single CPU would not be enough to calculate a 3D world."<ref name="NG February"/><ref name="NextGenDec">{{cite magazine|title=NG Hardware: Saturn|magazine=Next Generation|issue=12|volume=1|date=December 1995|pages=45–48|quote=The early pictures and technical breakdowns have remained relatively close to the final system, perhaps because the system was completed far earlier than many people realize&nbsp;[...] It was too late to make major alterations to the system, so, at the cost of pushing the launch schedule slightly, a video processor was added to the board to boost its 2D and 3D texture-mapping abilities. The real processing power of the Saturn comes from two Hitachi SH2 32-bit RISC processors running at 28 MHz. These processors were specially commissioned by Sega and are optimized for fast 3D graphics work.}}</ref> Although the Saturn's design was largely finished before the end of 1993, reports in early 1994 of the technical capabilities of [[Sony]]'s upcoming [[PlayStation (console)|PlayStation]] console prompted Sega to include another video display processor (VDP) to improve 2D performance and 3D texture mapping.<ref name="NG February"/><ref name="NextGenDec"/><ref name="NG January">{{cite magazine|title=NG Hardware: Saturn|magazine=Next Generation|issue=1|volume=1|date=January 1995|pages=44–45|quote=Sega has spent the last nine months or so playing catch-up with Sony after a publisher-friend tipped Sega off about the power of PlayStation.}}</ref> Sega considered making CD-ROM-based and cartridge-only versions of the Saturn, but discarded the idea due to concerns over the lower quality and higher price of cartridge games.<ref name="NG February"/>

According to president [[Tom Kalinske]], Sega of America "fought against the architecture of Saturn for quite some time".<ref name="1UP Pleasure and Pain"/> Seeking an alternative graphics chip for the Saturn, Kalinske attempted to broker a deal with [[Silicon Graphics]], but Sega of Japan rejected the proposal.<ref name="IGNHistory_pg6">{{cite web|url=https://ign.com/articles/2009/04/21/ign-presents-the-history-of-sega?page=6|author=Fahs, Travis|title=IGN Presents the History of Sega|website=[[IGN]]|page=6|access-date=May 1, 2014|date=April 21, 2009|archive-url=https://web.archive.org/web/20140306162629/http://www.ign.com/articles/2009/04/21/ign-presents-the-history-of-sega?page=6|archive-date=March 6, 2014|url-status=live}}</ref><ref name="Tale of Two E3s">{{cite web|last=Dring|first=Christopher|url=http://www.mcvuk.com/news/read/tale-of-two-e3s-xbox-vs-sony-vs-sega/0118482|title=A Tale of Two E3s – Xbox vs Sony vs Sega|website=MCVUK.com|access-date=January 4, 2019|date=July 7, 2013|url-status=dead|archive-url=https://web.archive.org/web/20170222190759/http://www.mcvuk.com/news/read/tale-of-two-e3s-xbox-vs-sony-vs-sega/0118482|archive-date=February 22, 2017}}</ref>{{sfn|Harris|2014|p=465}} Silicon Graphics subsequently collaborated with [[Nintendo]] on the [[Nintendo 64]].<ref name="IGNHistory_pg6"/>{{sfn|Harris|2014|p=464}} Kalinske, Sony Electronic Publishing's [[Ólafur Jóhann Ólafsson|Olaf Olafsson]], and Sony America's Micky Schulhof had discussed development of a joint "Sega/Sony hardware system", which never materialized due to Sega's desire to create hardware for both 2D and 3D visuals and Sony's competing notion of focusing on 3D technology.<ref name="Tale of Two E3s"/><ref name="Sega-16 Kalinske">{{cite web|last=Horowitz |first=Ken |url=http://www.sega-16.com/feature_page.php?id=214&title=Interview%3A+Tom+Kalinske |title=Interview: Tom Kalinske |website=Sega-16 |date=July 11, 2006 |access-date=December 24, 2014 |quote='''Tom Kalinske:''' I remember we had a document that Olaf and Mickey took to Sony that said they'd like to develop jointly the next hardware, the next game platform, with Sega, and here's what we think it ought to do. Sony apparently gave the green light to that&nbsp;[...] Our proposal was that each of us would sell this joint Sega/Sony hardware platform; we'll share the loss on the hardware (whatever that is, we'll split it), combine our advertising and marketing, but we'll each be responsible for the software sales we'll generate. Now, at that particular point in time, Sega knew how to develop software a hell of a lot better than Sony did. They were just coming up the learning curve, so we would have benefited much more greatly&nbsp;[...] I felt that we were rushing Saturn. We didn't have the software right, and we didn't have the pricing right, so I felt we should have stayed with Genesis for another year. |url-status=dead |archive-url=https://web.archive.org/web/20090207173139/http://www.sega-16.com/feature_page.php?id=214&title=Interview%3A%20Tom%20Kalinske |archive-date=February 7, 2009 }}</ref>{{sfn|Harris|2014|p=452}} 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."{{sfn|Kent|2001|p=509}}

In 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 the ''[[Panzer Dragoon]]'' developer [[Team Andromeda]], were formed during this time.<ref name="Making of Panzer Dragoon">{{cite web|url=http://www.nowgamer.com/features/894677/the_making_of_panzer_dragoon_saga_part_1.html|title=The Making Of&nbsp;[...] ''Panzer Dragoon Saga'' Part 1|date=December 17, 2008|website=Now Gamer|archive-url=https://web.archive.org/web/20140724042310/http://www.nowgamer.com/features/894677/the_making_of_panzer_dragoon_saga_part_1.html|archive-date=July 24, 2014|url-status=dead|access-date=March 20, 2014|quote='''Kentaro Yoshida:''' We thought we'd have no problem making games that were superior to PlayStation games.}}</ref> In early 1994, the [[Sega Titan Video]] arcade system was announced as an arcade counterpart to the Saturn. In April 1994, [[Acclaim Entertainment]] announced it would be the first American publisher to produce software for the Titan.<ref>{{cite magazine |title=News Digest |magazine=RePlay |date=May 1994 |volume=19 |issue=8 |page=14 |url=https://archive.org/details/re-play-volume-19-issue-no.-8-may-1994/RePlay%20-%20Volume%2019%2C%20Issue%20No.%208%20-%20May%201994/page/14}}</ref>

In January 1994, Sega began to develop the [[32X]] add-on for the Genesis, as a less expensive entry into the [[Fifth generation of video game consoles|32-bit era]]. The 32X was approved by Sega CEO [[Hayao Nakayama]] and widely supported by Sega of America employees.<ref name="Retroinspection32X">{{cite magazine|author=McFerran, Damien|year=2010|title=Retroinspection: Sega 32X|magazine=Retro Gamer|issue=77|pages=44–49|quote='''Scot Bayless:''' The 32X call was made in early January [1994]&nbsp;[...] There's a part of me that wishes the Saturn had adopted the 32X graphics strategy, but that ship had sailed long before the greenlight call from Nakayama.}}</ref> According to the 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. As a result, Nakayama ordered his engineers to have the system ready for launch by the end of the year.<ref name="Retroinspection32X"/> The 32X would not be compatible with the Saturn, but Sega executive Richard Brudvik-Lindner pointed out that the 32X would play Genesis games, and had the same system architecture as the Saturn.{{sfn|Kent|2001|p=494}} This was justified by Sega's statement that both platforms would run at the same time, and that the 32X would be aimed at players who could not afford the more expensive Saturn.<ref name="Retroinspection32X"/><ref name="Allgame32X">{{cite web|author=Beuscher, David |title=Sega Genesis 32X – Overview |website=Allgame |access-date=December 13, 2014 |url=http://allgame.com/platform.php?id=35 |url-status=dead |archive-url=https://web.archive.org/web/20141210012639/http://allgame.com/platform.php?id=35 |archive-date=December 10, 2014 }}</ref> According to Sega of America research and development head Joe Miller, the 32X familiarized development teams with the dual SH-2 architecture also used in the Saturn.<ref name="Miller">{{cite web|author=Horowitz, Ken|title=Interview: Joe Miller|website=Sega-16|url=http://www.sega-16.com/2013/02/interview-joe-miller/|date=February 7, 2013|access-date=May 25, 2014|quote='''Joe Miller:''' I'd say that the rhetoric around the deteriorating relationship is probably overblown a little bit, based on what I've read. Nakayama-san and SOJ knew they had a strong, proven management team in place at SOA, and while everyone was concerned about growing the business, neither side lost confidence in the other.|archive-url=https://web.archive.org/web/20131202233248/http://www.sega-16.com/2013/02/interview-joe-miller/|archive-date=December 2, 2013|url-status=live}}</ref> Because the machines share many parts and were prepared to launch around the same time, tensions emerged between Sega of America and Sega of Japan when the Saturn was given priority.<ref name="Retroinspection32X"/>

===Launch===
[[File:Sega-Saturn-JP-Mk1-Console-Set.jpg|thumb|A first-model Japanese Saturn unit]]
[[File:Sega-Saturn-Console-Set-Mk1.png|thumb|A first-model American Saturn unit]]
Sega released the Saturn in Japan on November 22, 1994, at a price of [[Japanese yen|¥]]44,800 (equivalent to {{Currency|{{To USD|44800|JPN|year=1994|r=-1}}|USD}} at the time).<ref name="Saturn">{{cite web|title=Sega Saturn|publisher=Sega Corporation|access-date=March 3, 2014|url=http://sega.jp/fb/segahard/ss/|language=ja|archive-url=https://web.archive.org/web/20140716103105/http://sega.jp/fb/segahard/ss/|archive-date=July 16, 2014|url-status=live}}</ref> ''Virtua Fighter'', a faithful port of the popular arcade game, sold at a nearly one-to-one ratio with the Saturn console at launch and was crucial to the system's early success in Japan.{{sfn|Kent|2001|pp=501–502}}<ref name="Edge VF">{{cite web|title=''Virtua Fighter'' Review |url=http://www.edge-online.com/reviews/virtua-fighter-review/ |work=Edge |date=December 22, 1994 |access-date=March 5, 2015 |quote=''Virtua Fighter''{{'}}s 3D characters have a presence that 2D sprites just can't match. The characters really do seem 'alive', whether they're throwing a punch, unleashing a special move or reeling from a blow&nbsp;[...] The Saturn version of ''Virtua Fighter'' is an exceptional game in many respects. It's arguably the first true 'next generation' console game, fusing the best aspects of combat gameplay with groundbreaking animation and gorgeous sound (CD music and clear samples). In the arcades, ''Virtua Fighter'' made people stop and look. On the Saturn, it will make many people stop, look at their bank balance and then fork out for Sega's new machine. Over to you, Sony. |url-status=dead |archive-url=https://web.archive.org/web/20141210173015/http://www.edge-online.com/reviews/virtua-fighter-review/ |archive-date=December 10, 2014 }}</ref><ref name="Edge Japanese launch"/> Though Sega had wanted to launch with ''[[Clockwork Knight]]'' and ''[[Panzer Dragoon (video game)|Panzer Dragoon]]'',<ref name="Making of Panzer Dragoon"/> the only other first-party game available at launch was ''Wan Chai Connection''.<ref>{{cite magazine|title=Saturn... Ahead of its Time?|last=Semrad|first=Ed|date=December 1994|magazine=[[Electronic Gaming Monthly]]|issue=65|page=6}}</ref> Boosted by the popularity of ''Virtua Fighter'', Sega's initial shipment of 200,000 Saturn units sold out on the first day.<ref name="Edge Japanese launch"/><ref name="IGNHistory_pg8">{{cite web|url=https://ign.com/articles/2009/04/21/ign-presents-the-history-of-sega?page=8|author=Fahs, Travis|title=IGN Presents the History of Sega|website=[[IGN]]|page=8|access-date=May 1, 2014|date=April 21, 2009|archive-url=https://web.archive.org/web/20151106173810/http://www.ign.com/articles/2009/04/21/ign-presents-the-history-of-sega?page=8|archive-date=November 6, 2015|url-status=live}}</ref>{{sfn|Harris|2014|p=536, gives a lower figure of 170,000}} Sega waited until the December 3 launch of the [[PlayStation]] to ship more units; when both were sold side by side, the Saturn proved more popular.<ref name="Edge Japanese launch"/>{{sfn|Kent|2001|p=502}}

Meanwhile, Sega released the 32X on November 21, 1994, in North America, December 3, 1994, in Japan, and January 1995 in PAL territories, at less than half of the Saturn's launch price.<ref>{{cite web|author=Buchanan, Levi|title=32X Follies|website=[[IGN]]|date=October 24, 2008|access-date=May 25, 2013|url=https://ign.com/articles/2008/10/24/32x-follies|archive-url=https://web.archive.org/web/20160417080118/http://www.ign.com/articles/2008/10/24/32x-follies|archive-date=April 17, 2016|url-status=live}}</ref><ref name="jp">{{cite web|title=Super 32X|url=https://sega.jp/fb/segahard/32x/|publisher=Sega Corporation|language=ja|access-date=February 23, 2014|archive-url=https://web.archive.org/web/20140716105656/http://sega.jp/fb/segahard/32x/|archive-date=July 16, 2014|url-status=live}}</ref> After the holiday season, however, interest in the 32X rapidly declined.<ref name="Retroinspection32X"/><ref name="Allgame32X"/> Half a million Saturn units were sold in Japan by the end of 1994 (compared to 300,000 PlayStation units),<ref>{{cite magazine|title=Japanese Stats Give Saturn the Edge|magazine=Edge|issue=19|volume=3|date=April 1995|pages=10–11|quote=This equates to the Saturn shifting an average number of 17,241 units a day and the [[PlayStation]] 15,789.}}</ref> and sales exceeded 1&nbsp;million within the following six months.<ref name="Next Gen 8">{{cite magazine|title=Sega Saturn: You've Watched the TV Commercials...Now Read the Facts|magazine=Next Generation|issue=8|volume=1|date=August 1995|pages=26–32}}</ref> There were conflicting reports that the PlayStation had a higher [[sell-through]] rate, and the system gradually began to overtake the Saturn in sales during 1995.<ref name="IGN History of PlayStation">{{cite web|url=https://ign.com/articles/1998/08/28/history-of-the-playstation|title=History of the PlayStation|website=[[IGN]]|date=August 28, 1998|access-date=November 16, 2014|archive-url=https://web.archive.org/web/20120218120358/http://psx.ign.com/articles/060/060188p1.html|archive-date=February 18, 2012|url-status=live}}</ref> Sony attracted many third-party developers to the PlayStation with a liberal $10 licensing fee, excellent development tools, and the introduction of a 7- to 10-day order system that allowed publishers to meet [[demand]] more efficiently than the 10- to 12-week [[lead time]]s for cartridges that had previously been standard in the Japanese video game industry.{{sfn|Kent|2001|p=504}}<ref>{{cite web|url=http://www.edge-online.com/features/making-playstation/3/ |title=The Making Of: PlayStation |page=3 |work=Edge |date=April 24, 2009 |access-date=March 5, 2015 |url-status=dead |archive-url=https://web.archive.org/web/20141018182151/http://www.edge-online.com/features/making-playstation/3/ |archive-date=October 18, 2014 }}</ref>

In March 1995, Sega of America CEO Tom Kalinske announced the Saturn's launch in the U.S. on "Saturnday" (Saturday), September 2, 1995.{{sfn|Kent|2001|p=516}}<ref name="Saturnday/1:1">{{cite press release|url=http://www.thefreelibrary.com/Let+the+games+begin%3a+Sega+Saturn+hits+retail+shelves+across+the...-a016634009|title=Let the games begin: Sega Saturn hits retail shelves across the nation Sept. 2; Japanese sales already put Sega on top of the charts.|agency=[[Business Wire]]|location=[[Redwood City, California]]|date=March 9, 1995|access-date=December 24, 2014|archive-url=https://web.archive.org/web/20141025012132/http://www.thefreelibrary.com/Let+the+games+begin%3a+Sega+Saturn+hits+retail+shelves+across+the...-a016634009|archive-date=October 25, 2014|via=The Free Library}}</ref><ref name="cnet">{{cite web|url=https://www.cnet.com/home/smart-home/why-the-saturn-was-the-worst-major-console-of-all-time/|title=Why the Saturn was the worst major console of all time|first=Don|last=Reisinger|website=[[CNET]]|date=31 January 2008|access-date=13 March 2023}}</ref> However, Sega of Japan mandated an early launch to give the Saturn an advantage over the PlayStation.{{sfn|Harris|2014|p=536}} 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 {{US$|399|long=no}} (including a copy of ''Virtua Fighter''<ref name="Six launch"/>), and described the features of the console. Kalinske also revealed that, due to "high consumer demand",<ref name="This Day">{{cite web|last=Cifaldi |first=Frank |url=http://www.1up.com/news/day-history-sega-announces-surprise |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 |archive-url=https://archive.today/20130629122913/http://www.1up.com/news/day-history-sega-announces-surprise |archive-date=June 29, 2013 }}</ref> Sega had already shipped 30,000 Saturns to [[Toys "R" Us]], [[Babbage's]], [[Electronics Boutique]], and [[Software Etc.]] for immediate release.{{sfn|Kent|2001|p=516}} The announcement upset retailers who were not informed of the surprise release, including [[Best Buy]] and [[Walmart]];<ref name="Tale of Two E3s"/><ref name="Schilling"/><ref name="cnet"/><ref name="Kalinske on launch and price">cf. {{cite magazine|title=Is War hell for Sega?|magazine=Next Generation|issue=13|volume=2|date=January 1996|page=7|quote='''Tom Kalinske:''' We needed to do something shocking because we were $100 more than the other guy&nbsp;[...] I still think [the surprise launch] was a good idea. If I had it to do over again would I do it a little differently? Yeah, definitely. I wouldn't take the risk of annoying retailers the way we did. I would clue them in and do an early launch in a region or three regions or something so we could include everybody.}}</ref> [[KB Toys]], which was not part of the early launch, responded by refusing to carry the Saturn and its games.<ref>{{cite web |title=K-B Toys tells its side |url=https://www.ign.com/articles/1996/09/28/k-b-toys-tells-its-side |website=[[IGN]] |date=September 28, 1996 |access-date=6 July 2023}}</ref><ref name="cnet"/>{{sfn|Kent|2001|p=516}} Sony subsequently unveiled the retail price for the PlayStation; Olaf Olafsson, the head of Sony Computer Entertainment America (SCEA), summoned Steve Race to the stage, who uttered "$299", and then walked away to applause.<ref name="Tale of Two E3s"/>{{sfn|Harris|2014|p=545}}{{sfn|Kent|2001|pages=505, 516}}<ref>{{cite web |url=http://www.syfygames.com/news/article/this-week-in-gaming-history-how-e3-1995-changed-gaming-forever|title=This Week in Gaming History: How E3 1995 changed gaming forever|author=Patterson, Patrick|website=[[Syfy Universal|Syfy Games]] |date=May 12, 2015 |access-date=June 25, 2018|archive-url=https://web.archive.org/web/20151225204734/http://www.syfygames.com/news/article/this-week-in-gaming-history-how-e3-1995-changed-gaming-forever|archive-date=December 25, 2015}}</ref><ref>{{cite web |url=http://www.theguardian.com/technology/2015/may/14/sega-saturn-how-one-decision-destroyed-playstations-greatest-rival|title=Sega Saturn: how one decision destroyed PlayStation's greatest rival|author=Keith Stuart|website=[[the Guardian]] |date=May 14, 2015|language=en |access-date=June 25, 2018|archive-url=https://web.archive.org/web/20180330025923/https://www.theguardian.com/technology/2015/may/14/sega-saturn-how-one-decision-destroyed-playstations-greatest-rival|archive-date=March 30, 2018}}</ref> The Saturn's release in Europe also came before the previously announced North American date, on July 8, 1995, at [[Pound sterling|£]]399.99.<ref name="RetroinspectionSaturn"/> European retailers and press did not have time to promote the system or its games, harming sales.<ref>{{cite news|title=Dear Saturn Mag, I've Heard the Saturn Couldn't Handle ''Alex Kidd''... Is This True?|work=[[Sega Saturn Magazine]]|volume=1|issue=2|date=December 1995|page=51}}</ref> The PlayStation launched in Europe on September 29, 1995; by November, it had already outsold the Saturn by a factor of three in the United Kingdom, where Sony had allocated £20&nbsp;million of marketing during the holiday season compared to Sega's £4&nbsp;million.<ref>{{cite web|last=Horsman|first=Mathew|url=https://www.independent.co.uk/news/business/sega-profits-plunge-as-rivals-turn-up-the-heat-1581404.html|title=Sega profits plunge as rivals turn up the heat|work=[[The Independent]]|date=November 11, 1995|access-date=January 20, 2015|archive-url=https://web.archive.org/web/20150120053343/http://www.independent.co.uk/news/business/sega-profits-plunge-as-rivals-turn-up-the-heat-1581404.html|archive-date=January 20, 2015|url-status=live}}</ref><ref>{{cite web|url=http://scei.co.jp/corporate/data/bizdataeu_e.html |title=Sony Computer Entertainment Inc. Business Development/Europe |publisher=SCE |access-date=January 20, 2015 |url-status=dead |archive-url=https://web.archive.org/web/20140728173744/http://scei.co.jp/corporate/data/bizdataeu_e.html |archive-date=July 28, 2014 }}</ref>

The Saturn's U.S. launch was accompanied by a reported $50&nbsp;million advertising campaign including coverage in publications such as ''[[Wired (magazine)|Wired]]'' and ''[[Playboy]]''.<ref name="Next Gen 8"/><ref>{{cite press release|url=http://www.thefreelibrary.com/Sega+Saturn+gets+astronomical+send+off+with+landmark+marketing...-a016940474|title=Sega Saturn gets astronomical send off with landmark marketing campaign; Sega breaks $50-million marketing campaign to support surprise launch at E3.|agency=[[Business Wire]]|location=[[Los Angeles]]|date=May 11, 1995|access-date=February 18, 2015|archive-url=https://web.archive.org/web/20150218104132/http://www.thefreelibrary.com/Sega+Saturn+gets+astronomical+send+off+with+landmark+marketing...-a016940474|archive-date=February 18, 2015|url-status=live|via=The Free Library}}</ref><ref name="Finn"/> Early advertising for the system was targeted at a more mature, adult audience than the Genesis ads.<ref>{{cite magazine|title=Sega: Who Do they Think you Are?|magazine=[[Next Generation (magazine)|Next Generation]]|issue=14 |publisher=[[Imagine Media]] |date=February 1996|page=71}}</ref><ref>{{cite magazine|title=Sega TV: Turn On, Tune In, Buy Hardware|magazine=[[Next Generation (magazine)|Next Generation]]|issue=14 |publisher=[[Imagine Media]] |date=February 1996|page=74}}</ref> The early rescheduling yielded only six [[launch games]] (all published by Sega) because most third-party games were scheduled around the original launch date.<ref name="Six launch">{{cite press release|url=https://www.thefreelibrary.com/Sega+Saturn+launch+takes+consumers+and+retailers+by+storm%3B+retailers...-a016867843|title=Sega Saturn launch takes consumers and retailers by storm; retailers struggling to keep up with consumer demand|agency=[[Business Wire]]|location=[[Redwood City, California]]|date=May 19, 1995|access-date=October 24, 2016|archive-url=https://web.archive.org/web/20161025111725/https://www.thefreelibrary.com/Sega+Saturn+launch+takes+consumers+and+retailers+by+storm%3B+retailers...-a016867843|archive-date=October 25, 2016|url-status=dead |via=The Free Library}}</ref><ref>{{cite magazine|title=1995: The Calm Before the Storm?|magazine=[[Next Generation (magazine)|Next Generation]]|issue=13 |publisher=[[Imagine Media]] |date=January 1996|page=47}}</ref><ref>{{cite magazine|last=Kato|first=Matthew|url=https://www.gameinformer.com/b/features/archive/2013/10/30/which-game-console-had-the-best-launch-lineup.aspx?PostPageIndex=3|title=Which Game Console Had the Best Launch Lineup?|magazine=[[Game Informer]]|date=October 30, 2013|page=3|access-date=February 17, 2017|archive-url=https://web.archive.org/web/20170630042313/http://www.gameinformer.com/b/features/archive/2013/10/30/which-game-console-had-the-best-launch-lineup.aspx?PostPageIndex=3|archive-date=June 30, 2017|url-status=live}}</ref> ''Virtua Fighter''{{'}}s relative lack of popularity in the West, combined with a release schedule of only two games between the surprise launch and September 1995, prevented Sega from capitalizing on the Saturn's early timing.<ref name="1UP Pleasure and Pain"/><ref name="IGNHistory_pg8"/>{{sfn|Kent|2001|p=533}} Within two days of its September 9, 1995, launch in North America, the PlayStation (backed by a large marketing campaign{{sfn|Kent|2001|p=504}}{{sfn|DeMaria|Wilson|2004|p=282}}) had more units sold than the Saturn had in the five months following its surprise launch, with almost all of the initial shipment of 100,000 units being sold in advance, and the rest selling out across the U.S.<ref name="IGN History of PlayStation"/>{{sfn|Kent|2001|pp=519–520}}

A high-quality port of the [[Namco]] arcade game ''[[Ridge Racer (video game)|Ridge Racer]]'' contributed to the PlayStation's early success,{{sfn|Kent|2001|p=502}}<ref>{{cite web|last=Parkin |first=Simon |url=http://www.edge-online.com/features/a-history-of-videogame-hardware-sony-playstation/ |title=A History of Videogame Hardware: Sony PlayStation |work=Edge |date=June 19, 2014 |access-date=March 5, 2015 |url-status=dead |archive-url=https://web.archive.org/web/20141129042841/http://www.edge-online.com/features/a-history-of-videogame-hardware-sony-playstation/ |archive-date=November 29, 2014 }}</ref> and garnered favorable media in comparison to the Saturn version of Sega's ''[[Daytona USA]]'', which was considered inferior to its arcade counterpart.<ref>{{cite magazine|title=''Daytona USA''|magazine=Edge|issue=21|volume=3|date=June 1995|pages=72–75|quote=Although AM2 has managed to replicate the coin-op tolerably well, Saturn ''Daytona'' fails to capture the arcade experience that PlayStation ''Ridge Racer'' so convincingly delivers.}} cf. {{cite magazine|last=McNamara|first=Andy|url=http://www.gameinformer.com/sep95/rracer.html|title=Prepare Yourself for the Ultimate Racing Experience|magazine=Game Informer|date=September 1995|access-date=April 15, 2014|archive-url=https://web.archive.org/web/19971120013114/http://www.gameinformer.com/sep95/rracer.html|archive-date=November 20, 1997|quote=''Daytona'' rules the arcade, but I think ''Ridge Racer'' dominates the home systems.|url-status=dead|display-authors=etal}} cf. {{cite magazine|author=Air Hendrix|title=Pro Review: ''Daytona USA''|magazine=GamePro|issue=73|volume=7|date=August 1995|page=50|quote=''Daytona'' pales in comparison to ''Ridge Racer'' for the Japanese PlayStation, which takes an early lead with better features, gameplay, and graphics.}}</ref>{{sfn|Mott|2013|p=239. "A disastrous home version [of ''Daytona USA''] for the Sega Saturn in 1995 is reviled for its choppy frame rate and flickering polygons"}} Namco, a longtime arcade competitor with Sega,<ref name="1UP VF"/>{{sfn|Kent|2001|p=582}} also unveiled the [[Namco System 11]] arcade board, based on raw PlayStation hardware.<ref name="Cheap">{{cite magazine|title=''Tekken''|magazine=Edge|issue=21|volume=3|date=June 1995|pages=66–70|quote=Namco took a significant risk in basing its ''Tekken'' coin-op on raw PlayStation hardware, considering that it would be competing directly with Sega's Model 2-powered ''Virtua Fighter 2''&nbsp;[...] For once, a home system can boast an identical conversion of a cutting-edge coin-op&nbsp;[...] Namco's research section managing director, Shegeichi Nakamura&nbsp;[...] explains: "When Sony came along we decided to go for a low-cost system—in short, we've left the big arcade stores to Sega and ''VF2'' and ''Tekken'' has been sold to smaller arcade centres"&nbsp;[...] Namco has a further four titles planned for System 11, all of which are likely to make the jump to the PlayStation.}}</ref> Although the System 11 is technically inferior to Sega's [[Sega Model 2|Model 2]] arcade board, its lower price made it attractive to smaller arcades.<ref name="Cheap"/><ref name="Fight Club"/> Following a 1994 acquisition of Sega developers, Namco released ''[[Tekken (video game)|Tekken]]'' for the System 11 and PlayStation. Directed by former ''Virtua Fighter'' designer [[Seiichi Ishii]], ''Tekken'' was intended to be fundamentally similar, with the addition of detailed textures and twice the [[frame rate]].<ref name="NG">{{cite magazine|title=Namco|magazine=Next Generation|volume=1|issue=1|date=January 1995|pages=70–73}}</ref><ref>{{cite magazine|title=''Tekken''|magazine=Next Generation|date=February 1995|issue=2|volume=1|page=82}}</ref><ref name="Harada">{{cite magazine|url=http://www.edge-online.com/features/an-audience-with-katsuhiro-harada/ |title=An Audience With: Katsuhiro Harada – on 20 years of ''Tekken'' and the future of fighting games |magazine=[[Edge (magazine)|Edge]] |date=September 23, 2013 |access-date=March 5, 2015 |url-status=dead |archive-url=https://web.archive.org/web/20141129114830/http://www.edge-online.com/features/an-audience-with-katsuhiro-harada/ |archive-date=November 29, 2014 }}</ref> ''Tekken'' surpassed ''Virtua Fighter'' in popularity due to its superior graphics and nearly arcade-perfect console port, becoming the first million-selling PlayStation game.<ref name="Fight Club"/>{{sfn|Mott|2013|p=254}}<ref>cf. {{cite magazine|author=Scary Larry|title=Pro Review: ''Virtua Fighter''|magazine=GamePro|issue=73|volume=7|date=August 1995|page=48|quote=The graphics were state-of-the-art when this game was released in the arcades a year ago. Other fighters—notably ''Tekken'' and ''[[Battle Arena Toshinden|Toh Shin Den]]''—now make better use of the polygon engine.}}</ref>

On October 2, Sega announced a Saturn price reduction to $299.<ref>{{cite press release|url=http://www.thefreelibrary.com/Sega+announces+%24299+Sega+Saturn+core+pack%3b+%27%27Virtua+Fighter+Remix%27%27...-a017512731|title=Sega Announces $299 Sega Saturn Core Pack; "''Virtua Fighter Remix''" Pack-In Available for $349.|agency=[[Business Wire]]|location=[[Redwood City, California]]|date=October 2, 1995|access-date=December 24, 2014|quote=Sega of America Monday announced that, effective immediately, it will dramatically drop the price of its high-end Sega Saturn system to $299.|archive-url=https://web.archive.org/web/20140504225632/http://www.thefreelibrary.com/Sega+announces+%24299+Sega+Saturn+core+pack%3b+%27%27Virtua+Fighter+Remix%27%27...-a017512731|archive-date=May 4, 2014|via=The Free Library}}</ref> High-quality Saturn ports of the [[Sega Model 2]] arcade hits ''[[Sega Rally Championship]]'',<ref>cf. {{cite magazine|last=Reiner |first=Andrew |url=http://www.gameinformer.com/jan96/rally.html |title=Easy Left, Baby |magazine=Game Informer |date=January 1996 |access-date=September 16, 2014 |quote=I'm far more impressed with this title than I was with Daytona. |display-authors=etal |url-status=dead |archive-url=https://web.archive.org/web/19971120011601/http://www.gameinformer.com/jan96/rally.html |archive-date=November 20, 1997 }} cf. {{cite magazine|title=Top Gear|magazine=Next Generation|issue=14|volume=2|date=February 1996|page=160}}</ref> ''[[Virtua Cop]]'',<ref>cf. {{cite magazine|last=Reiner |first=Andrew |url=http://www.gameinformer.com/jan96/vcop.html |title=Rendered and Ready to Wear |magazine=Game Informer |date=January 1996 |access-date=September 16, 2014 |display-authors=etal |url-status=dead |archive-url=https://web.archive.org/web/19971120011638/http://www.gameinformer.com/jan96/vcop.html |archive-date=November 20, 1997 }} cf. {{cite magazine|title=Stunning|magazine=Next Generation|issue=14|volume=2|date=February 1996|page=162|quote=Totally eliminates the hit or miss polarity of other light-gun games and adds a whole new level of detail to the genre.}}</ref> and ''[[Virtua Fighter 2]]'' (running at 60 frames per second at a high resolution)<ref name="VF2"/><ref>{{cite web|last=Marriott |first=Scott Alan |url=http://www.allgame.com/game.php?id=1982 |title=''Virtua Fighter 2'' |work=Allgame |access-date=December 14, 2014 |url-status=dead |archive-url=https://web.archive.org/web/20141114131607/http://www.allgame.com/game.php?id=1982 |archive-date=November 14, 2014 }}</ref><ref>cf. {{cite magazine|title=Platinum Pick: Virtua Fighter 2|magazine=Next Generation|issue=13|volume=2|date=January 1996|page=179|quote=The ultimate arcade translation&nbsp;[...] the best fighting game ever.}} cf. {{cite magazine|title=Excellent!|magazine=Next Generation|issue=14|volume=2|date=February 1996|page=160|quote=A general attention to detail that sets a new mark for quality game design.}}</ref> were available by the end of the year and were generally regarded as superior to competitors on the PlayStation.<ref name="RetroinspectionSaturn"/><ref name="US streets">{{cite magazine|title=Sony fights Sega on US streets|magazine=Next Generation|issue=13|volume=2|date=January 1996|pages=14–16}}</ref> Notwithstanding a subsequent increase in Saturn sales during the 1995 holiday season, the games were not enough to reverse the PlayStation's decisive lead.<ref name="US streets"/><ref name="1995 market share"/> 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]]''.{{sfn|Kent|2001|p=533}} An informal survey of retailers showed that the Saturn and PlayStation sold in roughly equal numbers during the first quarter of 1996.<ref>{{cite magazine|title=Just Who Is Winning the 32-Bit War? |magazine=[[Next Generation (magazine)|Next Generation]]|issue=17|publisher=[[Imagine Media]]|date=May 1996|page=22}}</ref> Within its first year, the PlayStation secured over 20% of the entire U.S. video game market.<ref name="Finn"/> On the first day of the May 1996 E3 show, Sony announced a PlayStation price reduction to $199,<ref name="IGN History of PlayStation"/> a reaction to the release of the Model 2 Saturn in Japan at a price roughly equivalent to $199.<ref name="EGM83">{{cite magazine|date=June 1996|title=Saturn Comes Down to Earth|magazine=[[Electronic Gaming Monthly]]|publisher=[[Ziff Davis]]|issue=83|pages=14–15}}</ref> On the second day, Sega announced it would match this price, though Saturn hardware was more expensive to manufacture.{{sfn|Kent|2001|p=532}}<ref>{{cite magazine|title=Sony's Video Games Onslaught Continues!|magazine=Maximum: The Video Game Magazine|issue=7 |publisher=[[Emap International Limited]]|date=June 1996|pages=72–73}}</ref>

===Changes at Sega===
{{Quote box
| quote = I thought the world of [Hayao] Nakayama because of his love of software. We spoke about building a new hardware platform that I would be very, very involved with, shape the direction of this platform, and hire a new team of people and restructure Sega. That, to me, was a great opportunity.
| source = —Bernie Stolar on joining Sega of America<ref name="IGNHistory_pg8"/>
| width = 30em
}}

After the launch of the PlayStation and Saturn, sales of 16-bit games and consoles continued to account for 64% of the video game market in 1995.{{sfn|Kent|2001|p=531}}<ref name="Innovation and competition">{{cite journal|last1=Gallagher|first1=Scott|last2=Park|first2=Seung Ho|title=Innovation and Competition in Standard-Based Industries: A Historical Analysis of the U.S. Home Video Game Market|journal=IEEE Transactions on Engineering Management|volume=49|number=1|date=February 2002|pages=67–82|doi=10.1109/17.985749}}</ref> Sega underestimated the continued popularity of the Genesis, and did not have the inventory to meet demand.<ref name="1995 market share"/>{{sfn|Kent|2001|p=531}} Sega was able to capture 43% of the dollar share of the U.S. video game market and sell more than 2&nbsp;million Genesis units in 1995, but Kalinske estimated that "we could have sold another 300,000 Genesis systems in the November/December timeframe."<ref name="1995 market share">{{cite news |title=Sega captures dollar share of videogame market again; diverse product strategy yields market growth; Sega charts path for 1996. |work=Business Wire |date=January 10, 1996 |access-date=December 24, 2014 |url=http://www.thefreelibrary.com/Sega+captures+dollar+share+of+videogame+market+--+again%3B+diverse...-a018001580 |quote=Estimated dollar share for Sega-branded interactive entertainment hardware and software in 1995 was 43 percent, compared with Nintendo at 42 percent, Sony at 13 percent and The 3DO Co. at 2 percent. Sega estimates the North American videogame market will total more than $3.9 billion for 1995. |archive-url=https://web.archive.org/web/20140502075742/http://www.thefreelibrary.com/Sega%2Bcaptures%2Bdollar%2Bshare%2Bof%2Bvideogame%2Bmarket%2B--%2Bagain%3B%2Bdiverse...-a018001580 |archive-date=May 2, 2014 |url-status=live }}</ref> Nakayama's decision to focus on the Saturn over the Genesis, based on the systems' relative performance in Japan, has been cited as the major contributing factor in this miscalculation.{{sfn|Kent|2001|p=508}}

Due to long-standing disagreements with Sega of Japan,<ref name="Tale of Two E3s"/><ref name="IGNHistory_pg8"/> Kalinske lost interest in his work as CEO of Sega of America.{{sfn|Kent|2001|p=535. '''Michael Latham:''' "[Tom] would fall asleep on occasion in meetings. That is true. These were nine-hour meetings. Sega had a thing for meetings. You'd get there at 8:00 A.M. and then you'd get out of the meeting at, like, 4:00 P.M., so he wasn't the only person&nbsp;[...] It wasn't the failure of the Saturn that made him lose interest; it was the inability to do something about it. He was not allowed to do anything. The U.S. side was basically no longer in control"}} By early 1996, rumors were circulating that Kalinske planned to leave Sega,{{sfn|Kent|2001|p=534}} and a July 13 article in the press reported speculation that Sega of Japan was planning significant changes to Sega of America's management.<ref name="Newsflash">{{cite web|title= Sega Planning Drastic Management Reshuffle – World Exclusive |url=http://www.next-generation.com/news/071396a.html |work=Next Generation |date=July 13, 1996 |access-date=May 6, 2014 |url-status=dead |archive-url=https://web.archive.org/web/19961220200717/http://www.next-generation.com/news/071396a.html |archive-date=December 20, 1996 }}</ref> On July 16, 1996, Sega announced that Kalinske would leave Sega after September 30, and that [[Shoichiro Irimajiri]] had been appointed chairman and CEO of Sega of America.<ref name="M2 Press"/><ref name="Kalinske out">{{cite web|title=Kalinske Out |url=http://www.next-generation.com/news/071696a.html |work=Next Generation |date=July 16, 1996 |access-date=May 6, 2014 |url-status=dead |archive-url=https://web.archive.org/web/19961220200643/http://www.next-generation.com/news/071696a.html |archive-date=December 20, 1996 }}</ref> A former [[Honda]] executive,<ref name="NYT">{{cite news |url=https://www.nytimes.com/1998/03/14/business/international-business-sega-enterprises-pulls-its-saturn-video-console-us-market.html?pagewanted=1 |title=Sega Enterprises Pulls Its Saturn Video Console From the U.S. Market |access-date=December 7, 2014 |author=Stephanie Strom |work=The New York Times |date=March 14, 1998 |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 |url-status=live}}</ref>{{sfn|Kent|2001|p=559}} Irimajiri had been involved with Sega of America since joining Sega in 1993.<ref name="M2 Press"/><ref>{{cite web|title=Irimajiri Settles in at Sega |url=http://www.next-generation.com/news/072596b.html |work=Next Generation |date=July 25, 1996 |access-date=May 6, 2014 |quote=Although a familiar face at Sega of America, Shoichiro Irimajiri has spent his first week in charge re-meeting all the staff. |url-status=dead |archive-url=https://web.archive.org/web/19961220195722/http://www.next-generation.com/news/072596b.html |archive-date=December 20, 1996 }}</ref> Sega also announced that [[David Rosen (business)|David Rosen]] and Nakayama had resigned from their positions as chairman and co-chairman of Sega of America, though both remained with the company.<ref name="M2 Press"/>{{sfn|Kent|2001|p=535}} [[Bernie Stolar]], a former executive at Sony Computer Entertainment of America,<ref name="Newsflash"/>{{sfn|Kent|2001|p=558}} was named 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|date=July 16, 1996|access-date=December 24, 2014|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. Sega also 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.|archive-url=https://web.archive.org/web/20141018032603/http://www.m2.com/m2/web/story.php/1996852568440080DDE88025683B005E7A3F|archive-date=October 18, 2014|url-status=live|url-access=subscription}}</ref><ref name="Kalinske out"/> Stolar, who had arranged a six-month PlayStation exclusivity deal for ''[[Mortal Kombat 3]]''{{sfn|Kent|2001|p=506}} and helped build close relations with [[Electronic Arts]]<ref name="IGNHistory_pg8"/> while at Sony, was perceived as a major asset by Sega officials.<ref name="Kalinske out"/> Finally, Sega of America made plans to expand its PC software business.<ref name="M2 Press"/>{{sfn|Kent|2001|p=559}}

Stolar was not supportive of the Saturn, deciding it was poorly designed, and publicly announced at E3 1997 that "the Saturn is not our future".<ref name="IGNHistory_pg8"/> Though Stolar had "no interest in lying to people" about the Saturn's prospects, he continued to emphasize quality games for the system,<ref name="IGNHistory_pg8"/> and later said that "we tried to wind it down as cleanly as we could for the consumer".{{sfn|Kent|2001|p=558}} At Sony, Stolar had opposed the localization of Japanese games that he decided would not represent PlayStation well in North America, and advocated a similar policy for the Saturn, although he later sought to distance himself from his actions.<ref name="IGNHistory_pg8"/>{{sfn|Kent|2001|p=506}}<ref>{{cite web|last=Johnston|first=Chris|url=http://www.gamespot.com/articles/stolar-talks-dreamcast/1100-2464369/|title=Stolar Talks Dreamcast|work=GameSpot|date=July 15, 1998|access-date=December 17, 2014|quote='''Bernie Stolar:''' I'm also a big believer in RPGs as well. No one ever believes that because I came out of the coin-op side of the business. But I'm an older, wiser person these days.|archive-url=https://web.archive.org/web/20170710051328/https://www.gamespot.com/articles/stolar-talks-dreamcast/1100-2464369/|archive-date=July 10, 2017|url-status=live}}</ref> 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.{{sfn|Kent|2001|p=533}} Marketing for the Saturn in Japan also changed with the introduction of [[Segata Sanshiro]] (played by [[Hiroshi Fujioka]]), a character in a series of TV advertisements starting in 1997; the character eventually starred in a Saturn game.<ref name="Shiro">{{cite web|author=Towell, Justin|title='Mr. Sega Saturn' lives on via amazing T-shirt|work=[[GamesRadar]]|url=https://gamesradar.com/mr-sega-saturn-lives-on-via-amazing-t-shirt/|date=June 23, 2012|access-date=March 3, 2014|archive-url=https://web.archive.org/web/20140308232401/http://www.gamesradar.com/mr-sega-saturn-lives-on-via-amazing-t-shirt/|archive-date=March 8, 2014|url-status=live}}</ref><ref>{{cite web|url=http://www.edge-online.com/features/week-japan-0/ |title=This Week in Japan |work=Edge |date=June 6, 2008 |access-date=March 5, 2015 |url-status=dead |archive-url=https://web.archive.org/web/20141103012109/http://www.edge-online.com/features/week-japan-0/ |archive-date=November 3, 2014 }}</ref>

Temporarily abandoning arcade development, Sega AM2 head [[Yu Suzuki]] began developing several Saturn-exclusive games, including a [[role-playing game]] in the ''Virtua Fighter'' series.<ref name="Ages">{{cite web|last=Kolan|first=Patrick|url=https://ign.com/articles/2007/08/08/shenmue-through-the-ages|title=''Shenmue'': Through the Ages|website=[[IGN]]|date=August 7, 2007|access-date=April 30, 2014|archive-url=https://web.archive.org/web/20141104113911/http://www.ign.com/articles/2007/08/08/shenmue-through-the-ages|archive-date=November 4, 2014|url-status=live}}</ref> Initially conceived as an obscure prototype, "The Old Man and the Peach Tree", and intended to address the flaws of contemporary Japanese RPGs (such as poor [[non-player character]] [[artificial intelligence]] routines), ''Virtua Fighter RPG'' evolved into a planned 11-part, 45-hour "revenge epic in the tradition of [[Cinema of China|Chinese cinema]]", which Suzuki hoped would become the Saturn's [[killer app]].<ref name="IGNHistory_pg8"/><ref>{{cite web|url=http://www.edge-online.com/news/the-making-of-shenmue-yu-suzuki-on-its-genesis-development-and-the-series-future/ |title=The Making of ''Shenmue'': Yu Suzuki on the Cult Classic's Genesis, Development&nbsp;– And Its Future |work=Edge |date=March 20, 2014 |access-date=March 5, 2015 |url-status=dead |archive-url=https://web.archive.org/web/20141215085448/http://www.edge-online.com/news/the-making-of-shenmue-yu-suzuki-on-its-genesis-development-and-the-series-future/ |archive-date=December 15, 2014 }}</ref><ref>{{cite web|last=Corriea|first=Alexa Ray|url=http://www.polygon.com/2014/3/19/5527120/yu-suzuki-shenmue-gdc-2014-classic-game-postmortem|title=Creator Yu Suzuki shares the story of ''Shenmue''{{'}}s development|work=Polygon|date=March 19, 2014|access-date=December 15, 2014|archive-url=https://web.archive.org/web/20150628071042/http://www.polygon.com/2014/3/19/5527120/yu-suzuki-shenmue-gdc-2014-classic-game-postmortem|archive-date=June 28, 2015|url-status=live}}</ref> The game was eventually released as ''[[Shenmue (video game)|Shenmue]]'' for the Saturn's successor, the [[Dreamcast]].<ref name="IGN Shenmue">{{cite web|url=https://ign.com/articles/1999/07/14/shenmue-the-history|title=Shenmue, the History: Our look at Shenmue's history begins back in 1996|website=[[IGN]]|date=July 13, 1999|access-date=April 30, 2014|archive-url=https://web.archive.org/web/20141030003504/http://www.ign.com/articles/1999/07/14/shenmue-the-history|archive-date=October 30, 2014|url-status=live}}</ref>{{sfn|Mott|2013|p=406}}

===Cancellation of ''Sonic X-treme''===
{{main|Sonic X-treme}}
[[File:Sxtreme-jadegully.jpg|thumb|right|Chris Senn and Ofer Alon's version of ''[[Sonic X-treme]]'' was canceled, and the lack of a fully 3D ''[[Sonic the Hedgehog]]'' platformer became a significant factor in the Saturn's [[List of commercial failures in video gaming|commercial failure]].]]
As [[Sonic Team]] was working on ''Nights into Dreams'',<ref name="Sega-16 STI"/> Sega tasked the U.S.-based [[Sega Technical Institute]] (STI) with developing the first fully 3D entry in its popular ''[[Sonic the Hedgehog]]'' series. The game, ''[[Sonic X-treme]]'', was moved to the Saturn after several prototypes for other hardware (including the 32X) were discarded.<ref name="Sega-16 STI">{{cite web|last=Horowitz|first=Ken|url=http://www.sega-16.com/2007/06/developers-den-sega-technical-institute/|title=Developer's Den: Sega Technical Institute|work=Sega-16|date=June 11, 2007|access-date=April 16, 2014|quote='''Roger Hector:''' When it became obvious that Sony was taking the lead, Sega's corporate personality changed. It became very political, with lots of finger-pointing around the company. Sega tried to get a handle on the situation, but they made a lot of mistakes, and ultimately STI was swallowed up in the corporate turmoil.|archive-url=https://web.archive.org/web/20160408141746/http://www.sega-16.com/2007/06/developers-den-sega-technical-institute/|archive-date=April 8, 2016|url-status=live}}</ref><ref name="Fahs revisited">{{cite web |author=Fahs, Travis |url=https://ign.com/articles/2008/05/29/sonic-x-treme-revisited |title=''Sonic X-Treme'' Revisited |website=[[IGN]] |date=May 29, 2008 |access-date=April 30, 2014 |archive-url=https://web.archive.org/web/20170712125403/http://www.ign.com/articles/2008/05/29/sonic-x-treme-revisited |archive-date=July 12, 2017 |url-status=live }}</ref><ref name="Xtreme">{{cite web|url=https://gamesradar.com/the-greatest-sonic-game-we-never-got-to-play/|author=Houghton, David|title=The greatest ''Sonic'' game we never got&nbsp;...|work=GamesRadar|date=April 24, 2008|access-date=July 23, 2012|archive-url=https://web.archive.org/web/20131026090625/http://www.gamesradar.com/the-greatest-sonic-game-we-never-got-to-play/|archive-date=October 26, 2013|url-status=live}}</ref> It featured a [[fisheye lens]] camera system that rotated levels with [[Sonic the Hedgehog (character)|Sonic]]'s movement. After Nakayama ordered the game be reworked around the [[Game engine|engine]] created for its boss battles, the developers were forced to work between 16 and 20 hours a day to meet their December 1996 deadline. Weeks of development were wasted after Stolar rescinded STI's access to Sonic Team's ''[[Nights into Dreams]]'' engine following an ultimatum by ''Nights'' programmer [[Yuji Naka]].<ref name="Fahs revisited"/><ref name="Xtreme"/><ref name="Edge X-Treme">{{cite magazine|date=July 2007|title=The Making Of... ''Sonic X-treme''|magazine=[[Edge (magazine)|Edge]]|publisher=[[Future plc]]|volume=15|issue=177|pages=100–103|url=http://www.edge-online.com/features/the-making-of-sonic-x-treme/|archive-url=https://web.archive.org/web/20130417052400/http://www.edge-online.com/features/the-making-of-sonic-x-treme/|archive-date=April 17, 2013|via=Edge Online|url-status=dead}}</ref> After programmer Ofer Alon quit and designers Chris Senn and Chris Coffin became ill, ''Sonic X-Treme'' was cancelled in early 1997.<ref name="Fahs revisited"/><ref name="Xtreme"/><ref name="Edge X-Treme"/> Sonic Team started work on an original 3D ''Sonic'' game for the Saturn, but development shifted to the Dreamcast as ''[[Sonic Adventure]]''.<ref>{{cite web|last=Barnholt |first=Ray |url=http://www.1up.com/features/yuji-naka-interview-ivy-kiwi?pager.offset=2 |title=Yuji Naka Interview: ''Ivy the Kiwi'' and a Little Sega Time Traveling |work=1UP.com |access-date=December 10, 2016 |url-status=dead |archive-url=https://archive.today/20140304180628/http://www.1up.com/features/yuji-naka-interview-ivy-kiwi?pager.offset=2 |archive-date=March 4, 2014 }}</ref><ref name="Relief">{{cite web|last=Towell|first=Justin|url=https://gamesradar.com/super-rare-1990-sonic-the-hedgehog-prototype-is-missing/|title=Super-rare 1990 ''Sonic The Hedgehog'' prototype is missing|work=GamesRadar|date=June 23, 2012|access-date=March 4, 2014|quote='''Yuji Naka:''' The reason why there wasn't a Sonic game on Saturn was really because we were concentrating on ''Nights''. We were also working on ''Sonic Adventure''—that was originally intended to be out on Saturn, but because Sega as a company was bringing out a new piece of hardware—the Dreamcast—we resorted to switching it over to the Dreamcast, which was the newest hardware at the time. So that's why there wasn't a Sonic game on Saturn. With regards to ''X-treme'', I'm not really sure on the exact details of why it was cut short, but from looking at how it was going, it wasn't looking very good from my perspective. So I felt relief when I heard it was cancelled.|archive-url=https://web.archive.org/web/20160324080928/http://www.gamesradar.com/super-rare-1990-sonic-the-hedgehog-prototype-is-missing/|archive-date=March 24, 2016|url-status=live}}</ref> STI was disbanded in 1996 as a result of changes in management at Sega of America.<ref name="Sega-16 STI"/>

Journalists and fans have speculated about the impact a completed ''X-treme'' might have had on the market. David Houghton of ''[[GamesRadar]]'' described the prospect of "a good 3D ''Sonic'' game" on the Saturn as "a 'What if...' situation on a par with the dinosaurs not becoming extinct".<ref name="Xtreme"/> ''[[IGN]]''{{'}}s Travis Fahs called ''X-treme'' "the turning point not only for Sega's mascot and their 32-bit console, but for the entire company [and] an empty vessel for Sega's ambitions and the hopes of their fans".<ref name="Fahs revisited"/> Dave Zdyrko, who operated a prominent Saturn fan website during the system's lifespan, said: "I don't know if [''X-treme''] could've saved the Saturn, but&nbsp;[...] ''Sonic'' helped make the Genesis and it made absolutely no sense why there wasn't a great new ''Sonic'' title ready at or near the launch of the [Saturn]."<ref name="1UP Pleasure and Pain"/> In a 2007 retrospective, producer Mike Wallis maintained that ''X-treme'' "definitely would have been competitive" with Nintendo's ''[[Super Mario 64]]''.<ref name="Edge X-Treme"/> ''[[Next Generation (magazine)|Next Generation]]'' reported in late 1996 that ''X-treme'' would have harmed Sega's reputation if it did not compare well to contemporary competition.<ref>{{cite magazine|title=In the Studio|magazine=[[Next Generation (magazine)|Next Generation]]|issue=23 |publisher=[[Imagine Media]] |date=November 1996|page=17}}</ref> Naka said he had been relieved by the cancellation, because the game was not promising.<ref name="Relief"/>

===Decline===
From 1993 to early 1996, although Sega's revenue declined as part of an industry-wide slowdown,<ref name="Finn">{{cite book|author-last=Finn|author-first=Mark|editor-last=Mäyrä|editor-first1=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=978-9514453717|pages=45–58}}</ref>{{sfn|Kent|2001|page=500}} the company retained control of 38% of the U.S. video game market (compared to Nintendo's 30% and Sony's 24%).<ref name="Innovation and competition"/> Eight hundred thousand PlayStation units were sold in the U.S. by the end of 1995, compared to 400,000 Saturn units.{{sfn|Kent|2001|page=520}}<ref>{{cite web|last=McCarthy|first=Dave|url=http://www.eurogamer.net/articles/a_playstationhistory_1|title=PlayStation-The total history|work=Eurogamer|date=November 20, 2006|access-date=November 16, 2014|archive-url=https://web.archive.org/web/20141129070933/http://www.eurogamer.net/articles/a_playstationhistory_1|archive-date=November 29, 2014|url-status=live}}</ref> In part due to an aggressive [[price war]],<ref name="Finn"/> the PlayStation outsold the Saturn by two to one in 1996, and Sega's 16-bit sales declined markedly.<ref name="Innovation and competition"/> By the end of 1996, the PlayStation had 2.9&nbsp;million units sold in the U.S., more than twice the 1.2&nbsp;million Saturn units sold.<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|pages=12, 23|doi=10.2307/41166174|jstor=41166174|s2cid=114838931|quote=Lack of distribution may have contributed significantly to the failure of the Sega Saturn to gain an installed base. Sega had limited distribution for its Saturn launch, which may have slowed the building of its installed base both directly (because consumers had limited access to the product) and indirectly (because distributors that were initially denied product may have been reluctant to promote the product after the limitations were lifted). Nintendo, by contrast, had unlimited distribution for its Nintendo 64 launch, and Sony not only had unlimited distribution, but had extensive experience with negotiating with retailing giants such as Wal-Mart for its consumer electronics products.}}</ref> The Christmas 1996 "Three Free" pack, which bundled the Saturn with ''Daytona USA'', ''Virtua Fighter 2'', and ''Virtua Cop'', drove sales dramatically and ensured the Saturn remained a competitor into 1997.<ref>{{cite magazine |title=Who Won the Videogame Wars of 1996? |magazine=[[Next Generation (magazine)|Next Generation]]|issue=28 |publisher=[[Imagine Media]] |date=April 1997|pages=16–19}}</ref>

However, the Saturn failed to take the lead. After the launch of the Nintendo 64 in 1996, sales of the Saturn and its games were sharply reduced,{{sfn|Kent|2001|p=558}} and the PlayStation outsold the Saturn by three-to-one in the U.S. in 1997.<ref name="Finn"/> The 1997 release of ''[[Final Fantasy VII]]'' significantly increased the PlayStation's popularity in Japan.<ref>{{cite web|url=http://www.edge-online.com/features/making-final-fantasy-vii/3/ |title=The Making Of: ''Final Fantasy VII'' |page=3 |work=Edge |date=August 26, 2012 |access-date=March 5, 2015 |url-status=dead |archive-url=https://web.archive.org/web/20141026033706/http://www.edge-online.com/features/making-final-fantasy-vii/3/ |archive-date=October 26, 2014 }}</ref>{{sfn|Mott|2013|page=332}} The game helped push PlayStation sales ahead of the Saturn in Japan, after the PlayStation and Saturn had been very close in Japan prior to the game's release.<ref>{{cite magazine|date=February 1998|title=Tokyorama|url=https://www.abandonware-magazines.org/affiche_mag.php?mag=51&num=4862&album=oui|magazine=[[:fr:Consoles +|Consoles +]]|issue=73|pages=46–7|lang=fr}}</ref> As of August 1997, Sony controlled 47% of the console market, Nintendo 40%, and Sega only 12%. Neither price cuts nor high-profile game releases proved helpful.{{sfn|Kent|2001|p=558}} Reflecting decreased demand for the system, worldwide Saturn shipments during March to September 1997 declined from 2.35&nbsp;million to 600,000 versus the same period in 1996; shipments in North America declined from 800,000 to 50,000.<ref>{{cite web|url=http://www.telecompaper.com/news/sega-sales-fall-in-1sthalf--123315 |title=Sega Sales Fall in First Half |work=Telecompaper |date=November 21, 1997 |access-date=November 5, 2015 |url-status=dead |archive-url=https://web.archive.org/web/20151105061708/http://www.telecompaper.com/news/sega-sales-fall-in-1sthalf--123315 |archive-date=November 5, 2015 }}</ref> Due to the Saturn's poor performance in North America, 60 of Sega of America's 200 employees were laid off in late 1997.<ref name="NYT"/>

{{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, assessed the Saturn in 2009.<ref name="IGNHistory_pg8"/>
| width = 30em
}}

As a result of Sega's deteriorating financial situation, Nakayama resigned as president in January 1998 in favor of Irimajiri.<ref name="NYT"/> Stolar subsequently acceded to 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|work=GameSpot|date=April 22, 1998|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|url-status=live}}</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|url=http://www.gamespot.com/articles/sega-news-from-japan/1100-2462352/|title=Sega News From Japan|work=GameSpot|date=March 18, 1998|access-date=December 7, 2014|archive-url=https://web.archive.org/web/20170705034437/https://www.gamespot.com/articles/sega-news-from-japan/1100-2462352/|archive-date=July 5, 2017|url-status=live}}</ref> Due to a 54.8% decline in consumer product sales (including a 75.4% decline overseas), the company reported a net loss of ¥43.3&nbsp;billion ({{US$|327.8 million|long=no}}) and a consolidated net loss of ¥35.6&nbsp;billion ({{US$|269.8 million|long=no}}).<ref name="1998 report">{{cite web|url=http://sega.jp/IR/en/ar/ar1998/ar98.pdf |title=Sega Enterprises Annual Report 1998 |publisher=Sega Enterprises, Ltd. |pages=1, 7–8 |access-date=December 7, 2014 |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 }}</ref>

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.<ref name="NYT"/>{{sfn|Kent|2001|p=558}} Only 7 Saturn games were released in North America in 1998 (''[[Magic Knight Rayearth (video game)|Magic Knight Rayearth]]'' is the final official release), compared to 119 in 1996.<ref name="Lemos">{{cite web|last=Lemos|first=Robert|url=https://www.zdnet.com/article/sega-makes-play-for-dreamcast-support/|title=Sega makes play for Dreamcast support|work=[[ZDNet]]|date=March 17, 1999|access-date=December 17, 2014|archive-url=https://web.archive.org/web/20141217114049/http://www.zdnet.com/article/sega-makes-play-for-dreamcast-support/|archive-date=December 17, 2014|url-status=live}}</ref><ref name="Parish">{{cite web|last=Parish|first=Jeremy|url=http://www.usgamer.net/articles/the-lost-child-of-a-house-divided-a-sega-saturn-retrospective|title=The Lost Child of a House Divided: A Sega Saturn Retrospective|work=USgamer|date=November 18, 2014|access-date=December 17, 2014|archive-url=https://web.archive.org/web/20141215095100/http://www.usgamer.net/articles/the-lost-child-of-a-house-divided-a-sega-saturn-retrospective|archive-date=December 15, 2014|url-status=live}}</ref> The Saturn lasted longer in Japan,{{sfn|Kent|2001|p=559}} with Irimajiri announcing in early 1998 that Sega would continue supporting the Saturn in Japan after its successor was released.<ref>{{cite magazine |title=Preparing for Launch |magazine=[[Electronic Gaming Monthly]]|issue=106 |publisher=[[Ziff Davis]] |date=May 1998|page=23}}</ref> Between June 1996 and August 1998, a further 1,103,468 consoles and 29,685,781 games were sold in Japan, giving the Saturn a Japanese [[attach rate]] of 16.71 games per console, the highest of that generation.<ref>{{cite book |title=TV Game Ranking Databook: 1995.9~1998.8 |date=15 December 1998 |publisher=[[:ja:ベストセラーズ|ベストセラーズ]] (Bestsellers) |isbn=978-4-584-16090-9 |pages=46–7 |url=https://cdn-ak.f.st-hatena.com/images/fotolife/M/MULTi88/20200929/20200929022108.jpg |lang=ja}}</ref> As of February 1997, the attach rate was four games per console worldwide.<ref>{{cite news |title=Sega lance une nouvelle offensive sur le marché des consoles de jeux de nouvelle génération. |url=http://www.sega-europe.com/FPR5.HTML |access-date=2025-02-14 |quote=A ce jour, Sega a vendu plus de 7,2 millions de Sega Saturn à travers le monde et en moyenne 4 jeux par console. Le catalogue des jeux Saturn est composé de plus de 200 titres. |publisher=Sega Europe |date=1997-02-24 |language=fr |archive-url=https://web.archive.org/web/19970715065016/http://www.sega-europe.com/FPR5.HTML |archive-date=1997-07-15 }}</ref>

Rumors about the upcoming Dreamcast, spread mainly by Sega, were leaked to the public before the last Saturn games were released.{{sfn|Kent|2001|p=559}} The Dreamcast was released on November 27, 1998, in Japan and on September 9, 1999, in North America.{{sfn|Kent|2001|pp=563–564}} The decision to abandon the Saturn effectively left the Western market without Sega games for over one year.<ref name="IGN History of Dreamcast">{{cite web|last=Fahs|first=Travis|url=https://ign.com/articles/2010/09/10/ign-presents-the-history-of-dreamcast|title=IGN Presents the History of Dreamcast|website=[[IGN]]|date=September 9, 2010|access-date=December 24, 2014|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|url-status=live}}</ref> Sega suffered an additional ¥42.881&nbsp;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.<ref>{{cite web|url=http://www.segasammy.co.jp/english/ir/pdf/ir/kako/sega_AR_all_2000.pdf |title=Sega Corporation Annual Report 2000 |publisher=Sega Corporation |page=18 |access-date=December 24, 2014 |url-status=dead |archive-url=https://web.archive.org/web/20070925210504/http://www.segasammy.co.jp/english/ir/pdf/ir/kako/sega_AR_all_2000.pdf |archive-date=September 25, 2007 }}</ref><ref>{{cite web|last=King|first=Sharon R.|url=https://www.nytimes.com/1999/07/12/business/technology-sega-is-giving-new-product-special-push.html|title=TECHNOLOGY; Sega Is Giving New Product Special Push|work=[[The New York Times]]|date=July 12, 1999|access-date=December 24, 2014|archive-url=https://web.archive.org/web/20141225075707/http://www.nytimes.com/1999/07/12/business/technology-sega-is-giving-new-product-special-push.html|archive-date=December 25, 2014|url-status=live}}</ref>

Worldwide Saturn sales include at least the following amounts in each territory: 5.75&nbsp;million in Japan (surpassing Genesis sales of 3.58&nbsp;million there<ref name="Sega Stats">{{cite magazine|title=Weekly ''Famitsu'' Express|magazine=Famitsu|volume=11|issue=392|date=June 21, 1996|page=8}}</ref>), 1.8&nbsp;million in the United States, 1&nbsp;million in Europe, and 530,000 elsewhere.<ref>{{cite magazine|title=Goodbye (?!) Sega Saturn|magazine=Dreamcast Magazine (JP)|volume=3|issue=12|date=April 7, 2000|page=154}}</ref> With lifetime sales of 9.26&nbsp;million units,<ref>{{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> the Saturn is considered a [[List of commercial failures in video games|commercial failure]],<ref name="brandweek">{{cite magazine|magazine=Brandweek|title=Looking for a Sonic Boom|author=Lefton, Terry|volume=9|issue=39|year=1998|pages=26–29}}</ref> although its install base in Japan, where it did better than the West,<ref>{{Cite web |last=Parish |first=Jeremy |date=2014-11-18 |title=The Lost Child of a House Divided: A Sega Saturn Retrospective |url=https://www.vg247.com/the-lost-child-of-a-house-divided-a-sega-saturn-retrospective |access-date=2024-08-29 |website=[[VG247]] |language=en}}</ref><ref>{{Cite web |last=Extension |first=Time |date=2024-08-29 |title=Best Sega Saturn Games Of All Time |url=https://www.timeextension.com/guides/best-sega-saturn-games-of-all-time?page=4 |access-date=2024-08-29 |website=Time Extension |language=en-GB}}</ref> surpassed the Nintendo 64's 5.54&nbsp;million,<ref>{{cite web |url=http://www.nintendo.co.jp/ir/library/historical_data/pdf/consolidated_sales_e0912.pdf |title=Consolidated Sales Transition by Region |publisher=Nintendo |access-date=November 15, 2015 |url-status=dead |archive-url=https://web.archive.org/web/20110224231633/http://www.nintendo.co.jp/ir/library/historical_data/pdf/consolidated_sales_e0912.pdf |archive-date=February 24, 2011 }}</ref> where it became Sega's highest-selling home console.<ref>{{Cite web |last=Extension |first=Time |date=2023-03-24 |title=It's Official! Sega Poll Reveals Fans Want The Sega Saturn Mini Next |url=https://www.timeextension.com/news/2023/03/its-official-sega-poll-reveals-fans-want-the-sega-saturn-mini-next |access-date=2024-08-30 |website=Time Extension |language=en-GB}}</ref> The Saturn ultimately shipped more than 6 million units in Japan.<ref>{{cite web |url=https://www.sega.jp/history/hard/column/column_05.html |title=【連載】セガハードストーリー第5回 家庭用ゲーム機新時代の幕開け『セガサターン』 |trans-title=[Series] Sega Hardware Story Vol. 5 - Dawn of a New Era of Home Video Game Consoles: Sega Saturn |lang=Japanese |publisher=[[Sega]] |date=March 1, 2018 |access-date=January 23, 2025 |archive-url=https://web.archive.org/web/20250123210959/https://www.sega.jp/history/hard/column/column_05.html |archive-date=January 23, 2025}}</ref> Lack of distribution has been cited as a significant factor of the Saturn's failure, because the system's surprise launch had damaged Sega's reputation with key retailers.<ref name="Schilling"/> Conversely, Nintendo's long delay in releasing a 3D console and damage to Sega's reputation caused by poorly supported Genesis add-ons are considered major factors allowing Sony's establishment in the video game market.<ref name="Finn"/>{{sfn|DeMaria|Wilson|2004|pages=282–283}}