In the early 1980s,
Sega Enterprises, Inc., then a subsidiary of
Gulf and Western Industries, was one of the top five
arcade game manufacturers active in the United States, as company revenues rose to $214 million. A downturn in the
arcade business starting in 1982 seriously hurt the company, leading Gulf and Western to sell its North American arcade manufacturing organization and the licensing rights for its arcade games to
Bally Manufacturing. The company retained Sega's North American
R&D operation, as well as its Japanese subsidiary, Sega Enterprises, Ltd. With its arcade business in decline, Sega Enterprises, Ltd. president
Hayao Nakayama advocated that the company leverage its hardware expertise to move into the home console market in Japan, which was in its infancy at the time. Nakayama received permission to proceed. The first model to be developed was the
SC-3000, a computer with a built-in keyboard, but when Sega learned of Nintendo's plans to release a games-only console, they began developing the
SG-1000 alongside the SC-3000. The
SG-1000 was first released in Japan on July 15, 1983, at
¥15,000. It was released on the same day as
Nintendo launched the
Family Computer (Famicom) in Japan. It was released simultaneously with the
SC-3000, Though Sega themselves only released the SG-1000 in Japan, rebranded versions were released in several other markets worldwide. In November that same year as the Japanese version, the SC-3000 was released in Australia through
John Sands Electronics The console also saw a release in France, Italy, and Spain, but was not released in the larger video game markets of the United States, United Kingdom, or Germany. Due in part to the SG-1000's steadier stream of releases (21 SG-1000 games by the end of 1983, as compared to only 9 Famicom games), and in part to a recall on Famicom units necessitated by a faulty circuit, the SG-1000 sold 160,000 units in 1983, far exceeding Sega's projection of 50,000. Despite this, the three launch games, all of which were ported from
Sega's VIC dual-arcade board, lacked the name recognition of Famicom launch games
Donkey Kong,
Donkey Kong Jr., and
Popeye. so Nakayama and former Sega CEO
David Rosen arranged a
management buyout of the Japanese subsidiary in 1984 with financial backing from
CSK Corporation, a prominent Japanese software company. Nakayama was then installed as CEO of the new Sega Enterprises, Ltd. Following the buyout, Sega released another console, the
SG-1000 II, on July 31, 1984, It is sometimes referred to as the "SG-1000 Mark II". By 1984, the Famicom's success began to outpace the SG-1000. The Famicom had more advanced hardware, allowing it to perform smoother scrolling and more colorful
sprites, and Nintendo boosted its games library by courting
third-party developers, whereas Sega was less than eager to collaborate with the same companies they were competing with in arcades. The SG-1000 was also coming up against game consoles from companies including
Tomy and
Bandai. This would result in the release of the Sega Mark III in Japan in 1985, which later became the
Master System worldwide. ==Technical specifications==