Sega is a Japanese multinational video game developer and publisher headquartered in Shinagawa, Tokyo. Its international branches, Sega of America and Sega Europe, are headquartered in Irvine, California and London. Sega's arcade department existed as Sega Interactive Co., Ltd. from 2015 to 2020, and then merged with Sega Games to create Sega Corporation, with Sega Games as the surviving entity. Sega is a subsidiary of Sega Group Corporation (part of Sega Sammy Holdings). From 1983 to 2001, Sega also developed video game consoles.
Sega was founded by American businessmen Martin Bromley and Richard Stewart on June 3, 1960 as Nihon Goraku Bussan; shortly after, the company acquired the assets of its predecessor, Service Games of Japan. Five years later, the company changed its name to Sega Enterprises, Ltd. after acquiring Rosen Enterprises, an importer of coin-operated games. Sega developed its first coin-operated game Periscope in 1966. Sega was sold to Gulf and Western Industries in 1969. After the arcade business downturn in the early 1980s, Sega began to develop video game consoles, starting with the SG-1000 and Master System, but fought against competitors such as Nintendo Entertainment System. In 1984, Sega executives David Rosen and Zhongshan Falcon led the management buyout of the company with the support of CSK.
Sega released the next game console Sega Genesis (known as Mega Drive outside North America) in 1988. Genesis struggled in the competition in Japan, but after the release of Sonic the Hedgehog in 1991, it achieved success overseas and briefly surpassed its main product competitor, the Super Nintendo Entertainment System. In the latter part of this decade in the United States, Sega Encountered several commercial failures, such as 32X, Saturn and Dreamcast game consoles. In 2001, Sega stopped manufacturing game consoles and became a third-party developer and publisher, and was acquired by Sami in 2004. In the years after the acquisition, Sega's profits were even higher. Sega Holdings Co., Ltd. was established in 2015; Sega Corporation was renamed Sega Games Co., Ltd., and its arcade, entertainment and toys divisions were split into other companies. Sega Games and Sega Interactive merged in 2020 and changed its name to Sega Corporation.
Sega has produced a number of multi-million-selling game series, including "Sonic the Hedgehog", "Total War" and "The Gangster", and is one of the most prolific arcade game makers in the world. Its name is also used for companies that operate arcades and other entertainment products, including Sega Toys, but these companies are largely separate from their current business interests. Sega was recognized for its support of its video game consoles, creativity and innovation. In recent years, it has been criticized for the quality of its business decisions and creative output.