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— CH. 1 · ORIGINS AND DEVELOPMENT HISTORY —

Master System

~5 min read · Ch. 1 of 6
6 sections
  • Sega released its first video game console, the SG-1000, in Japan on the 15th of July 1983. This launch occurred on the same day that Nintendo introduced the Family Computer, also known as the Famicom. The timing created an immediate rivalry between two Japanese giants entering the home market. Parent company Gulf and Western Industries divested Sega later that year, leading to a management buyout. Hayao Nakayama became CEO while David Rosen served as co-founder. Isao Okawa from CSK Corporation took over as chairman to provide financial backing.

    On the 31st of July 1984, Sega released the SG-1000 II with detachable controllers. Engineers Hideki Sato and Masami Ishikawa led the development of the next iteration. They redesigned the hardware because the Texas Instruments TMS9918A graphics chip lacked power for their desired games. The new Mark III launched in Japan on the 20th of October 1985 at ¥15,000. Its internal chip was designed in-house based on the System 2 arcade board. Despite superior hardware compared to the Famicom, the Mark III struggled to gain traction against Nintendo's licensing restrictions.

  • Sega of America opened its doors in San Francisco during 1986 to manage consumer products in North America. Bruce Lowry, formerly vice president of sales at Nintendo of America, joined the new division. He chose the name Master System after employees threw darts at a whiteboard of suggestions. The console debuted at the Summer Consumer Electronics Show in Chicago in June 1986. It officially launched in September 1986 with a price tag of $200. Early packages included a light gun, two controllers, and multicarts featuring Hang-On and Safari Hunt.

    Nintendo held 83 percent of the North American video game market by 1988. Sega sold only between 1.5 million and 2 million units globally before production ceased in early 1992. In 1987, struggling sales prompted Sega to hand distribution rights to toy company Tonka. Tonka had no experience with electronic entertainment systems but offered knowledge of the American toy market. They blocked localization of popular Japanese games and became less willing to purchase EPROMs needed for cartridge manufacture. Financial losses from purchasing Kenner Toys further hampered their ability to invest in video games.

  • The Master System launched in Europe during August 1987 through various distributors including Mastertronic in the United Kingdom. Virgin Group acquired a minority interest in Mastertronic to enter the console business. By 1990, Virgin Mastertronic sold 150,000 Master Systems in the UK alone. This figure exceeded the 60,000 Mega Drives and 80,000 Nintendo consoles sold that same year. Combined European sales reached 918,000 units, surpassing Nintendo's 655,000. The system maintained its lead in markets like the UK, Belgium, and Spain throughout the early 1990s.

    Brazil saw success begin in September 1989 when Tectoy distributed the console. Nintendo did not officially arrive until 1993, allowing clones to dominate the local market initially. Tectoy claimed 80 percent of the Brazilian video game market by establishing telephone services with game tips. They created a Master System club and presented programs on Rede Globo television shows. By 2016, Tectoy had sold 8 million units of Master System branded systems in Brazil. Dedicated plug-and-play consoles emulating original hardware continue to sell there today.

  • The main CPU was an 8-bit Zilog Z80A rated for 4 MHz but running at 3.58 MHz. Video output displayed 256 times 192 pixels using up to 32 colors from a palette of 64. The Japanese version integrated the Yamaha YM2413 FM chip as an optional feature. Sega produced several iterations including the Master System II released in 1990. This model removed the Sega Card slot, reset button, power light, and expansion port to reduce costs. Most regions omitted the A/V port leaving only RF output available.

    France received a unique version with only A/V video output and no RF hardware. Tectoy released variations like the Master System Super Compact which functioned wirelessly via an RF transmitter. The Master System Girl came molded in bright pink plastic targeting female players. The Master System 3 Collection launched in 2006 containing 120 built-in games. Handheld versions appeared under brands such as Coleco in 2006. These modifications ensured longevity in specific regional markets where the original design faced competition.

  • North America received just over 100 games while Europe secured more than 300 licensed titles. Japan received fewer releases than either region. Cartridges held up to 4 Mbit of code while Sega Cards stored 256 Kbit. Cards were cheaper to manufacture but eventually dropped due to small memory size. The first Mark III-specific cartridge was Fantasy Zone released on the 15th of June 1986. Bomber Raid served as the final release on the 4th of February 1989 in Japan. The last North American release arrived in October 1991 featuring Sonic the Hedgehog.

    PAL regions enjoyed ports of Genesis franchises including Streets of Rage alongside dozens of exclusives. Titles like The Lucky Dime Caper Starring Donald Duck and Asterix remained unavailable elsewhere. Tectoy created Portuguese translations for exclusive Brazilian titles such as Teddy Boy becoming Geraldinho. They developed Férias Frustradas do Pica-Pau after discovering Woody Woodpecker popularity on television. Nintendo's licensing practices restricted third-party developers from releasing games on other platforms. This resulted in few relationships with external studios compared to competitors.

  • Sales estimates place total units between 10 million and 13 million worldwide excluding later Brazilian sales. The Master System is considered by many publications to be the longest-lived gaming console in history. It took this title from the Atari 2600. Electronic Gaming Monthly gave it scores ranging from 2 to 5 out of 10 points in buyer guides from 1992 and 1993. Reviewers noted better value in the Genesis and lack of quality games for the Master System. Over 34 million NES units sold in North America alone, outselling the Master System globally nearly three times over.

    Retro Gamer writer Adam Buchanan praised the larger PAL library as superb. Damien McFerran recognized its importance to the success of the Mega Drive. IGN named the Master System the 20th best console of all time in 2009 behind the Atari 7800 and the NES. Critics cited small and uneven NTSC libraries as major problems. Months could go by between major releases making a dud feel even more painful. Sega closed the gap with Nintendo in the next generation through the release of the Genesis which sold 30.75 million consoles.

Common questions

When did Sega release the Master System in North America?

The Master System officially launched in September 1986 with a price tag of $200. It debuted at the Summer Consumer Electronics Show in Chicago in June 1986 before its official release.

Who designed the hardware for the Sega Mark III console?

Engineers Hideki Sato and Masami Ishikawa led the development of the next iteration known as the Mark III. They redesigned the hardware because the Texas Instruments TMS9918A graphics chip lacked power for their desired games.

How many units of the Master System were sold globally by 1992?

Sega sold only between 1.5 million and 2 million units globally before production ceased in early 1992. Sales estimates place total units between 10 million and 13 million worldwide excluding later Brazilian sales.

What was the main CPU speed of the Master System?

The main CPU was an 8-bit Zilog Z80A rated for 4 MHz but running at 3.58 MHz. Video output displayed 256 times 192 pixels using up to 32 colors from a palette of 64.

When did Tectoy begin distributing the Master System in Brazil?

Brazil saw success begin in September 1989 when Tectoy distributed the console. By 2016, Tectoy had sold 8 million units of Master System branded systems in Brazil.