The
Sega Genesis was released in 1988. By early 1994, Sega had started to become concerned about competition from newer, more powerful
32-bit consoles, such as the
Atari Jaguar and the
3DO. The
Sega CD, a previous add-on for the Genesis, had not met commercial expectations, and the Genesis' successor, the
Sega Saturn, would not be fully rolled out worldwide until late 1995. This left a nearly two-year gap that Sega worried would allow its competitors to gain traction. According to former Sega of America CEO
Tom Kalinske, in regards to discussing the longevity of the Genesis, "Initially, the argument was that we could get another year of life out of the Genesis before we had to introduce the Saturn. Japan disagreed with me on that, so as kind of a stopgap measure, the 32X came up." From these discussions, the new add-on, codenamed "Project Mars", was advanced. The original design for the 32X add-on, according to Bayless, was created on a cocktail napkin, but Miller denied this.
Edge was more critical, questioning if the 32X was only there to fill in as a stopgap for the Christmas season in the US and Europe, and referred to the Japanese release as a "PR exercise and quick money maker [rather] than a serious bid to get the machine into every home". Responding to concerns over the 32X being a stopgap, Kalinske said, "Saturn will be at a price point that will not make it a massmarket item. In terms of volume and keeping the category exciting, it's Genesis and 32X." in time for the
holiday season that year. As announced, it retailed for $159.99 without a
pack-in game. exceeding Sega's initial sales projection. Launching at about the same price as a Genesis console, the price of the 32X was less than half of what the Saturn's price would be at launch. Sega promised 12 games available at launch and 50 games due for release in 1995 from third-party developers. Games were available at a retail price of $69.95. two weeks after the launch of the Saturn in the region. The 32X launched in Brazil in March 1995.
Decline Despite the lower price console's positioning as an inexpensive entry into 32-bit gaming, Sega had a difficult time convincing
third-party developers to create games for the new system. Top developers were already aware of the coming arrival of the Sega Saturn,
Nintendo 64, and PlayStation, and did not believe the 32X would be capable of competing with any of those systems. Not wanting to create games for an add-on that was "a technological dead-end", many developers decided not to make games for the system. In order to convince the press that the 32X was a worthwhile console, Sega flew in journalists from all around the country to
San Francisco for a party at a local nightclub. The event featured a speech from Kalinske, live music with a local rapper, and 32X games on exhibition. However, the event turned out to be a bust, as journalists attempted to leave the party due to its loud music and unimpressive games on display, only to find that the buses that brought them to the nightclub had just left and would not return until the scheduled end of the party. Though the system had a successful launch, demand soon disappeared. Over the first three months of 1995, several of the 32X's third party publishers, including
Capcom and
Konami, cancelled their 32X projects so that they could focus on producing games for the Saturn and PlayStation. The 32X failed to catch on with the public, and is considered a
commercial failure. By 1995, the Genesis had still not proven successful in Japan, where it was known as Mega Drive, and the Saturn was beating the PlayStation, so Sega CEO Hayao Nakayama decided to force Sega of America to focus on the Saturn and cut support for Genesis products, executing a surprise early launch of the Saturn in the early summer of 1995. Sega was supporting five different consoles before this—Saturn, Genesis,
Game Gear,
Pico, and the
Master System—as well as the Sega CD and 32X add-ons. Sales estimates for the 32X stood at 665,000 units at the end of 1994. Despite assurances from Sega that many games would be developed for the system, in early 1996, Sega finally conceded that it had promised too much out of the add-on and decided to discontinue the 32X in order to focus on the Saturn. and later the remaining inventory was cleared out of stores at $19.95, with 800,000 units sold in total.
Sega Neptune The Sega Neptune is an unproduced two-in-one Genesis and 32X console which Sega planned to release in winter 1996, with the retail price planned to be under $200. In Sega’s 1995 official product catalog, the system was presented under the name "Genesis 32X System", reflecting Sega’s intention to market it as a fully integrated Genesis and 32X platform. The console was featured as early as March 1995, with
Sega Magazine stating that the unit "shows [Sega's] commitment to the hardware". The same official catalog listed the system as compatible with the
Sega-CD, which logically follows from its design as an integrated platform, meaning that both standard CD titles and CD 32X titles would have operated on the Neptune as well. Sega cancelled the Neptune in October 1995, expressing concern that releasing another hardware platform would dilute their marketing focus on the Saturn and place a sub-$200 hybrid system uncomfortably close to their 32-bit offering.
Electronic Gaming Monthly later used the Neptune as an
April Fools' Day prank in its April 2001 issue, claiming that Sega had discovered a warehouse of unused Neptune units available for . Although often referred to as a prototype, the physical unit shown in promotional contexts was in fact a non-functional mock-up constructed from wood and plastic, used solely to illustrate the intended industrial design of the system. ==Technical aspects and specifications==