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  • April 1995 (Revised July 1995)
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Power Play (B): Sega in 16-bit Video Games

  • Format:Print
  • | Language:Japanese
  • | Pages:10
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Abstract

Home video-game systems were pioneered by the U.S. company Atari in the mid-1970s. After going through boom and bust in the early 1980s, the industry was resurrected in the mid-1980s by the Japanese company Nintendo. With its 8-bit video-game system, Nintendo established a dominant position in a greatly expanded home video-game market. The case focuses on the post-1987 period, when new 16-bit home video-game technology began to come on the market. First to introduce a next-generation system was the major Japanese electronics company NEC. Second out with a 16-bit system was Sega, the leader in the Japanese arcade-game business and an unsuccessful player in the 8-bit home video-game market. Nintendo itself moved more slowly in introducing a 16-bit system. The case ends with the battle between Sega and Nintendo to gain the edge in 16-bit sales.

Keywords

Technology; Competition; Video Game Industry; Japan; United States

Citation

Brandenburger, Adam M. "Power Play (B): Sega in 16-bit Video Games." Harvard Business School Case 795-103, April 1995. (Revised July 1995.)
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