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===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 [...] 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 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 [...] 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 million of marketing during the holiday season compared to Sega's £4 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 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'' [...] For once, a home system can boast an identical conversion of a cutting-edge coin-op [...] Namco's research section managing director, Shegeichi Nakamura [...] 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" [...] 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 [...] 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>
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