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The Evolution of Sega
Gamasutra is running an interview with Simon Jeffrey, Sega of America's CEO, discussing the gradual change of the company from a hardware manufacturer to a game publisher. Among other things, he talks about how the transition was intended to help keep up with rival manufacturers at a time when Sega was clearly falling behind.
"We were on the cusp of the next generation, and on the cusp of Nintendo changing into a different company and opening up a new part of the market. So it felt like the time was right for Sega to reinvent itself. Really what I tried to do was ride that train and make the most of that point in time, bringing new people into the company and start building the kind of products that would get a leadership position in the next generation on the Wii and the DS, rather than just playing catch-up with everybody else, which is what we've traditionally done."
Correct me if I'm wrong, but didn't the Genesis/Megadrive come out between the NES and SNES? That means for a while Sega did have the upper hand.
Not only that, but even after the SNES was released, the Genesis and SNES were very different machines with their own pros/cons.