Thus, Sega decided that they would beat Nintendo to the punch with a console based on their System 16 arcade board (codenamed "Mark V").Įnter the Mega Drive or, as North Americans refer to it, the Sega Genesis, note It was commonly believed that the name change was because "Mega Drive" was already trademarked in the U.S. They were already being impacted in Japan by the sudden success of NEC's PC Engine (TurboGrafx-16 in the West) which, while not actually 16-bit, was a noticeable technical improvement from the Famicom, which was underpowered even for its time. Nintendo were complacent with their success and dragging their feet on developing a 16-bit system, which was the arcade standard at the time. The hold of the NES/Famicom was too strong, and the Master System wasn't advanced enough to topple the juggernaut. While the Sega Master System was a decent success in Europe and South America, it failed to make any strong dents in the North American and Japanese markets.
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