Editing Sega Saturn (section)

===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}}