Sega FY 1997 - The Slow Death of a Titan

[@PandaMoniumReviews]

This video was re-uploaded after a copyright dispute. The original upload (posted on September 16 of 2023) had 19,492 views, 1,360 likes and 21 dislikes. It had 402 comments, including my own. The disputed material was swapped out. I also took this time to add new Patreon subscribers to the credits, specifically those who subbed to get early access to this very video. I also made a few very minor editorial changes to draw attention more closely to the subject matter at hand. No changes were made at the request of viewers.

[@CBXweb]

This video is the equivalent of realizing that your Dad lied to you after all these years. But at the same time it brings solace on the feeling of my heart being empty. Like, cool, I know now. But this wound has been healing for over 20 years. Still gives me heart palpitation, it affects me to my core identity.

[@bpcgos]

Just another KZbin doing its best ... screwing their content creator videos...

[@barry-allenthe-flash8396]

I will gladly watch this AGAIN for the third time (counting the initial livestream where you just read through the thing) as it remains just SO fascinating to me. I never thought Fiscal Reports could be that interesting until you did this, but man, it sure does paint a great picture and you do a great job of compressing, explaining and illustrating all these points in a coherent way.

[@Larry]

To be honest, if you ever get a copyright claim, always contest it. New KZbin policies mean that the claimaint would literally need to take you and KZbin to court in order to fully remove the video, and unless you have millions of subscribers, it's not worth their time. I had that with the WWE at the beginning of the year.

[@ot4_retrogaming]

thanks for the re-upload, are you allowed to tell us what part is missing? how long that section was, or was it just something minor?

[@scibot9000]

i'm going to re-add my thoughts because they still hold true: these videos could be text-only slideshows projected on the world's emptiest wall and I'd still be on the edge of my seat just from the depth of research you put in, but then you go HARD on the editing and i love it

[@Random-yh9tj]

oh hello there

[@AyeYoYoYooo]

Dude is the fkn BEST !

[@forthrightgambitia1032]

Something worth adding here is that Sega were caught out by how much the video games industry shifted in the mid-90s. Nintendo were also caught out given how dismal N64 and Gamecube sales were, the difference was they had saved more money from the 8 bit and 16 bit successes and the Gameboy tided them over enough that they were able to reinvent themselves with the Wii. I think people have such nostalgia for Sega *now* precisely because they represent most purely the vibe and philosophy of early-to-mid 90s gaming which skewed far more towards difficult games aimed at late teenagers and arcade dwellers.

[@retrospiel]

I run a small local game store where people trade in stuff, even entire collections. For Sega collections it usually goes like this: Master System, Mega Drive, Mega CD, 32X, PS1, PS2.

[@MisterBigMack]

Incredible - an hour long video which perfectly shows why SEGA is no longer in the console business I love SEGA but hate how badly the business was ran as a whole in the mid 90s Thank you Nick for yet another absolutely incredible video, we as a Saturn/Sega community absolutely do not deserve you ❤

[@MaxAbramson3]

And yet the Kalinske Plan was perfectly valid. We were all waiting in anticipation for the new $49.95 LockOn cart that would give us all advanced 3D capabilities in Spring of 1994. Four games had already been made for it that we know of: Daytona USA, Virtua Fighter, Virtua Racing, and Star Wars Arcade, all huge arcade hits. Those games would've flushed put all of that Genesis inventory and moved another 7-10 games on top of that. The Kalinske Plan would've made SEGA hundreds of millions more that were wiped out by the early launch of the Saturn and discontinuation of everything else in October 1995!

[@S_raB]

​​@@MaxAbramson3 32X was a mistake & Kalinske was against it. Plus he fought not to release the Saturn early. But Japanese culture had labeled Tom as a villain. He was winning & succeeding in America while in Japan Nakayama had to constantly see his team fail. Reportedly, from the mouths of employees, Nakayama physically abused people while shouting at them to be better like Sega of America. Suffice to say, the Japanese employees despised Kalinske & when the chance came to one up him (release the Saturn early) they pushed hard. Nakayama created a toxic culture & ultimately brought about Sega's failure. Edit: tldr; yeah, Kalinske was right & Japan should've listened to him 100%. The guy made Mattel a leader in the toy industry - he's very good at his job

[@MegamanNG]

@@S_raB No wonder SEGA Japan wanted to move onto the Saturn. But at the same time, SEGA America should have let go of the Genesis and go all in on Saturn.

[@S_raB]

@@MegamanNG I recommend watching "Console Wars" documentary. It's on Paramount Plus, if I recall correctly. It's not all the info, but it's damn good. The Saturn could've been amazing & cemented the company as a console giant. History is not kind to their failures. Also, Sega had the opportunity to partner with Sony in developing the Playstation (after Nintendo had betrayed Sony - a whole nother topic) and again, Japan turned it down as they didn't want to be perceived as, kinda hard to explain but in Japan it's very negatively looked at in business to partner with competitors, I forget the Japanese term...but, yeah... imagine Sega was a first party creator for Playstation for the past 30 years in partnership with Sony!

[@MegamanNG]

@@S_raB So in a way, Nintendo and SEGA were responsible for creating the PS1. Yikes.

[@Belmont-69]

This video is so interesting. I'm really glad the file got leaked, because it does answer a lot of questions about how exactly SoA got themselves into such a hole, why the Saturn languished from start to end as it was accepted too late, and dropped too early in the USA.

[@itwsntme]

Wow. Congratulations on this solid piece. Great work. I always thought Sega always was, first and foremost, an arcade company. That's where their strength laid. The only time they were truly successful with a home console was the Genesis, which, to their credit was substantially the work of SOA, and explains why they were so overly attached to it. That was nothing short of a miracle, putting up a fight to Nintendo is no small feat. But their days were always numbered. By the sixth gen, home consoles were evolving past their arcade counterparts. They were becoming their own thing and arcade pedigree was becoming increasingly irrelevant. So one way or another, unless Sega radically reinvented itself, they were going to exit the home hardware market sooner or later. Having said that, and in light of this report, it feels like SOA was substantially responsible for the fall of the company.

[@elgoog-the-third]

To be fair with Sega... they *did* radically reinvent themselves with the Dreamcast.

[@joelpetersmedia]

I was terrified that the full clip of the airport ad was the one taken out, but fortunately it is still there. I can rest now

[@almir-chan9570]

Sega predicted 9/11

[@Tirgo69]

Kind of crazy the 32X had a standout Star Wars game to capitalize on the later 1997 Special Editions hype, but Sega Saturn couldn't get any SW games.

[@jet9385]

I had no idea how bleak Sega's situation was from such an early point. It really frames releasing the Dreamcast as a baffling business decision in my mind.

[@MasaCheez]

2:56 dude. That was an epic use of the screen rolling from the CRT to show your name. Love the presentation style you use.

[@MatthewCobalt]

As I said before: It's like watching a trainwreck in slow motion...

[@Chelaxim]

Anytime I watch a video on the history of Sega as a console manufacturer I keep thinking to myself "y'all MFs are dumb as hell".

[@nc.3224]

I found myself pausing on just about every email/document here!! It must have been so much to read through and synthesize together, but very well presented and easy to follow-major kudos to you and everyone involved in the making of this!!!💯

[@Technosphile]

My man..I’ve watched this video like five times now, front to back. It’s honestly one of the greatest things I’ve ever seen. I would love to track down one of the hapless programmers at Microprose and ask them what the deal was with their NFL game that was better off dead.

[@deku812]

The Irimajiri comments really put into context the big 1993 Sega had. I think that was the year Sega made more profits than Nintendo and it was all over the gaming mags. From what Irimajiri is saying, it may have all been inventory US retailers bought then returned, so the losses filtered through via those warehouses of unsold investory. Also puts into context Nintendo's strict inventory controls and accusations of undershipping to retailers making a lot more sense than the charge that they did it to create demand with the retailers often being the wronged party. Seems like they were the problem and would order as many units of something as they could if they could just return it all later forcing the manufacturer to eat the losses.

[@williammcguire130]

Yeah these unshipped units really put into perspective Nintendo's strategies: they weren't creating artificial demand, they just played things safe

[@TheBigExclusive]

There's 2 major issues the video missed. 1. Companies in America are required by retailers to have extra inventory in storage. Regardless if the inventory is sold or not. 2. Sega of America doesn't just handle console sales. They handle Arcade cabinet sales too. This document doesn't cover that at all. Arcade cabinets in the 1990s made up the majority of Sega's profits.

[@JDoe-gf5oz]

This was amazing. It's ridiculous this channel hasn't blown up yet.

[@GamingTeacher]

Watching this for like the fourth time. It’s nice to have in the background while I work, and I’m still utterly stunned by how… insane Sega of Japan and America both were in similar and different ways.

[@GamingTeacher]

Having now watched your review archive (you got me hooked, not gonna lie!), it’s astounding Sega was as arrogant as they were. This was… the writing was plainly on the wall. My god.

[@nicholasgutierrez9940]

Honestly, the whole document feels like Hitler in the fuhrerbunker. They are making E3 Steiner's counter attack when everyone already knows it's over. "If Sonic attacks, everything will be alright" "Mein fuhrer..."

[@autobotstarscream765]

Most of the American Saturn ads were cringy garbage. They should've just hired Chuck Norris and Haim Saban to Americanize the masterpiece Segata Sanshiro ads like the recent success of Power Rangers bringing Super Sentai to international television.

[@MrSaywutnow]

Segata Sanshiro was an amazing mascot. What little I've seen of American marketing for the Saturn was just plain awful.

[@vdd]

If I was Bernie Stolar, rather than say the Saturn was “not our future” I’d instead say that we’re excited about the Dreamcast but there are still some great games coming for the Saturn and stress that there was still life in the console Push the 2D powerhouse aspect and push the idea that 2D games still have a place in the Fifth Gen You could even push a snazzy SEGA styled marketing line like “2D is just 2COOL” or something Don’t say the quiet part loud basically

[@dadjdemitri]

So in some simplification, Sega of America killed Sega's console ambitions by refusing to let go of the 16 bit era by pushing for Genesis and 32x related peripherals while the company should have aligned and focused on making the Saturn the 5th generation powerhouse of the company.

[@lastkeymusic]

The editing and atmosphere in this video is sill untouchably great!

[@defaultxr]

It's almost better than Metroid Prime.

[@TyRoberts]

Excellent video that sadly shows precisely how dire things got for Sega and makes it completely understandable as to why they failed as a hardware company.

[@e.l.4409]

They still should have set those 32Xs on fire

[@PandaMoniumReviews]

Thank you so much for the support. That would have a glorious, albeit smelly, bonfire.

[@Random-yh9tj]

​@@PandaMoniumReviewswhy so mean pal, give them to me so I can play Virtua Racing Deluxe

[@MrSaywutnow]

Thank you for including the "299" speech. I'm not even a Sony fan, and I still think it's the greatest E3 press conference of all time. And maybe it's just a case of 20/20 hindsight, but Sega's "arcade to home" strategy was doomed to failure. The mid 90s was already the beginning of the end for arcade gaming, and it was consoles that were driving the decline. I refuse to believe that industry insiders did not see the decline of arcades coming a mile away.

[@kyotokid]

Sorry to hear the other video got taken down. This video is well worth the watch, great job!

[@CalvinTennessee]

Just when you thought you had seen every great Sega documentary. Awesome job!

[@Poyostar]

Easily one of the best Sega documentaries on the platform; it has such a surreal, dreamlike feel to it at times, and intentional or not, I quite like it. I adore the Sega Saturn and several of its games, especially my dearly beloved NiGHTS Into Dreams, and it's a shame it didn't last very long due to all of the factors that led to its downfall outside of Japan.

[@Moto200Alt]

And I'll gladly watch it again.

[@tripdefect87]

As I commented on in the last version: Thank you for doing this video. I knew SOA was in dire straits, but I had no clue that it was this bad. I still wonder if even Sonic Extreme could have remotely saved the company

[@maroon9273]

Plus, all of the canceled saturn games

[@benitosierrajr3958]

Kinda, but if SOJ didn’t force SOA to release the Saturn four months earlier to get a head start on the PlayStation internationally, made the Saturn developer friendly and lowered the price of the console, it would’ve had a chance, but this was early to mid 90s SOJ and SOA, so their chances would’ve been botched either way.

[@epsilonalphaargo1948]

​@@benitosierrajr3958 The reason why SOJ forced SOA to launch the Saturn early was that SOA was bleeding money thanks to the 32X crashing and burning. The early launch was a an attempt by SOJ to stop SOA from sinking further into the red by putting a product they could actually sell onto the market.

[@ElbowDropMO]

If the console launched with it, maybe it would have made a dent. Keep in mind, Sonic was already starting to cool off compared to the Sonic 1 and 2 years but was still Sega's ace for sure. A 3D Sonic game launching with the console in late 95, might have done something. That being said, by 96/97, with the die already cast, I don't think it would have turned anything around. In fact, with Super Mario 64 being a massive hit around that time (and already gathering hype at shows and in press), I question what the reception to XTreme would have been. But at best, it delays the inevitable. Buyers had already gone 3 years without a new Sonic by that point and many were firmly with Sony or Nintendo. If Sonic Adventure didn't do much to turn the tide for Dreamcast in 98/99 (depending on region), I don't think Sonic XTreme in 96/97 would've been enough for the much bigger task of saving Saturn.

[@startervisions]

I really is interesting, how the home console paradigm shift, literally led to the obsolescence of Sega as a hardware company, regardless of the fact that their consoles and games replicating the arcade experiences better than their competitors, the people chose Nintendo and Sony as their favorite because they wanted to move on to a home console video game experience...it's almost sad how that era of gaming was just abandoned by consumers hahaha

[@petermanfredini]

I cant tell you how great this video was. This is real history about a console that was forgotten over time. Its so cool to see others so passionate about the saturn. Its my favorite console. Your channel is so high effort and high quality for relatively low views, it definitely deserves millions of views. But just know youre doing a real service for all us hardcore old school sega fans

[@milklordnomadic]

Damn, just found your channel yesterday and I'm very glad. Although I think these videos could be edited for brevity because many points are repeated throughout the videos I've watched and I find myself sometimes skipping ahead 10-20secs at a time. Otherwise, jesus man, you've done some extremely excellent work and thank you for having the human confidence to reach out to these HUMAN BEINGS and get the real stories, docs, etc. You deserve 10x the subs easily! Respect!

[@Prince.Mykal.Vision]

So the truth is, that in contrast to what we've always been told, SOA (Tom Kalinske) was the problem and NOT Sega of Japan. It seems the biggest issue is that SOA held on to the Genesis too long, and continually over-hedged their bets on juicing every drop out of the 16 bet era, rather than moving on to the 32bit generation before it became too costly for them. SOA was drunk off the success of Sega had amassed in the USA between 1990-94'. They should have discontinued the Sega Genesis/CD while they were ahead and prepared for a world wide Saturn launch, which would have avoided the 32x, the over manufacturing, and retail buy back problems. They also would have had a year head start on Sony.

[@Carsonj13]

So Tom Kalinske was a bad business man but Bernard Stolar was a stand up guy? What?

[@DestinyZX1]

@@Carsonj13both are bad for different reasons

[@Carsonj13]

@@DestinyZX1 Kalinske merely became bad. Stolar was always bad.

[@DestinyZX1]

@@Carsonj13 Agreed. In every aspect.

[@penguinreloaded7756]

​@@Carsonj13Stolar was a clown.

[@WrestlingWithGaming]

Bravo! This was so good.

[@PandaMoniumReviews]

Thank you so much!! Means a lot coming from you. :)

[@Viledisgorgement]

Time to watch it for a third time, amazing work as always!

[@ericp631]

This is by far the best documentary about Sega I've ever seen. Every other retro gaming channel just regurgitates the same b.s. over and over. Tom is a super genius that was always right about everything and always the good guy, Sega was dominating the 90's(genesis here and the Saturn the japanese market) and money was flowing in like water with no financial losses/instability/shakey ground underneath it all, soj are dumb and evil people who destroyed their own company because they were jealous of Tom b.s.

[@Carsonj13]

Tom Kalinske was no angel, but Bernard Stolar was not the right man to clean up any mess that had already been made. All he did was smear it everywhere and make more.

[@MaxAbramson3]

Tom was right about every decision except one critical one: Not bringing out superscaler 3D games for the Sega CD in advertising them. People who saw us with a $300 addon assumed that we'd been duped into buying a machine that only played s***y FMV games and lazy ports.

[@Carsonj13]

@@MaxAbramson3 Did my comment get deleted?

[@MaxAbramson3]

@@Carsonj13 I've had a lot of comments getting deleted lately.

[@epsilonalphaargo1948]

​@@MaxAbramson3Same thing happened to me.

[@davidmackenzie8441]

Your delivery is outstanding and way above the usual KZbin standard. Have you ever done voiceover work?

[@PandaMoniumReviews]

I do video related work professionally, outside of KZbin. Also, thank you. :)

[@subc150]

Wow, finally the KZbin algorithm pointed me towards an absolute gem of a video. As a longtime European SEGA fan this hit me right in the feels. I personally don't regard the remarks of the SoJ interviewee placing low-key blame on SoA as very honest. If you look at the European market and SoE, the same struggles and bad decisions plagued the EU SEGA divisions over there as well, so to point at SoA's bad strategic decisions is just not telling the whole story. The "mothership" definitely had a big hand in the demise of SEGA.

[@tournaline3448]

An absolutely sensational video as always. The content alone is first class but the presentation takes it to elite heights. I really appreciate your efforts, your videos are both insightful and entertaining. Thank you.

[@Brobius]

This is such a great video! Glad to see its return!

[@tidq]

Sega tried to take down your video because they don’t want people to see how bad they were at business decisions. Keep fighting the power, Nick!

[@PandaMoniumReviews]

Haha!! That would be funny, but I do not think that is what happened. :)

[@barry-allenthe-flash8396]

It's fascinating once again to revisit this and see how the current Sega leadership just canned Hyenas, but shows that they're still terrible in similar ways. I mean now that the behind-the-scenes drama coming out ( for example: kzbin.info/www/bejne/ipy5ZniGgZZ4iJI ) it's so clear that SEGA still struggle bad at earmarking money for the right projects and pushing the things that actually seem to have promise and will actually hit with their audience.

[@felipearellano2811]

Also, great video like the rest of your series! Sega Rally was recommended to me days ago, and I've been binging your content. Superb production, narration, research; everything. Keep doing a good work!

[@st1ka]

Once again, great video man. Take my like and another algorithm pleasing comment ^^

[@wlsmojo]

Thanks for the absolutely brilliant coverage of these documents and this era :-)

[@metaj92]

Thank you for making such indepth content.

[@colefitzpatrick8431]

This video made me sick to my fucking stomach. Good work scraping at the bottom of Sega's barrels and delivering the harshest, most brutal realities, in excruciating details. That last line, about Stolar, is brutal. Godspeed. More like this, please.

[@Carsonj13]

That question about stolar really got me thinking... now my head hurts...😂

[@Gamevet]

Only to those that think that Stolar was wrong. RIP!

[@Carsonj13]

@@Gamevet Stolar WAS wrong... Final Fantasy VII's success is proof of this. But yeah, I agree, RIP.

[@Gamevet]

@@Carsonj13 Console RPGs in the west were a niche product. Even the mighty Final Fantasy III only managed to sell 650K units in North America. Grandia's sales numbers in Japan weren't even that good.

[@Carsonj13]

@@Gamevet Yeah, during the 16-bit era they were niche. by 1997, the writing was on the wall that that's what consumers wanted. Again, Final Fantasy VII proves this. Sony had gold with that game and they knew it, so they advertised the hell out of it. Viral marketing for games was practically non-existent before FF7. And Grandia sold 1 million units... On an installed base of around 5 million at the time... That's not good to you? Hm...

[@nicholasgutierrez9940]

I wonder how much of this is due to the difference in culture. Western markets usually have "just in time" production. They start off big and want to continue to do big, so they invest everything into a single product. If it fails, they're dead. Meanwhile Japan doesn't really have that issue because they are more cautious. They can make a bad decision but they rarely over invest in one product to the point where it cripples them.

[@PlatformerFan]

What a sobering video. The FY document being disseminated was a gift and we should be so lucky that we have even slightly more illumination on Sega’s troubled history.

[@Konuvis]

Thank you for reuploading this!

[@maroon9273]

This is the most accurate history of sega downfall.

[@OverJumpRally]

Re-comment just for the upload. Stellar work, as always!!

[@RebeccaGunn]

Adding a thumbs up and a comment to help this excellent video get traction again Still hurts my fan heart but dang SoA really was blast processing towards the bad future in 1997

[@planescaped]

Sega of America were incredibly short sighted and Sega of Japan were incredibly out of touch with the market. Created quite a sandwich of failure.

[@RebeccaGunn]

@@planescaped Oh I agree both were not helping things. But SoA staff used to claim Genesis was still selling and SoJ announcing that all support for older systems would be nixed is what hurt them. When it seems the market just totally fell off the cliff once customers moved to next gen

[@PapiGee]

I wonder which part of the video that did get a copyright dispute? Or perhaps some of audio? Anyway, here's another thumbs up. 👍

[@philipLS2509]

Thanks so much again for this eye-opening documentary. I watched it again. I laughed out loud at the wonderful footage of Mr Bone's voice actor displaying his musical prowess to impress the ladies. Strange that SOA had such high expectations for Mr. Bones. I can't wait for your Sega Rally documentary!

[@metaj92]

You make such great content! Thanks so much for the new video.

[@GFgruel]

Masterful job as always! Can only imagine the amount of editing hours spent on this. So many little things that go a long way! Thank you for the presumably exhaustive research! So many memories of being a kid at this time and being beyond perplexed why Sega was releasing so many platforms!! Thank you for this!! Well worth the wait for your videos! I'm going to watch your NBA Jam video again now!! 🏀

[@MrThunderwing]

Excellent job on this, mate! I mean, Jebus, depressing as fuck to see Sega slowly dying in this way, but excellent job at collating all the info from the leaked document into a watchable form.

[@joemamr710]

I watched it before and I will watch it again because I love your videos. You need 1000x as many subscribers.

[@moot6794]

Sorry to hear about the former dispute. I'm back again to support this amazing video! Great work!

[@MariaNefefova_1955]

This video is a masterpiece!!!! Thank you!!!

[@joaogrrr]

Mid 90s Sega wasn't just suicidal. It was streaming it all live with sponsors and giving out viewership rewards.

[@Juvi797]

Perfect timing on that Sonic 3D blast deal with it ! LOL

[@ofmannotmachine3012]

First off, thanks for the insane amount of work you had to put into this video. The amount of information is absolutely STAGGERING. I love it. I think the most incredible thing I learned from watching this video, is for how bad Sega screwed everything up with the Saturn, how they managed to get their act together so quickly with the Dreamcast. Unfortunately, the Saturn (and yeah the 32X didn't do any favors) eroded consumer confidence so greatly, that Sega didn't have enough money to keep the Dreamcast going to fully re gain consumer confidence again.

[@kamalzamer9443]

Great work as always

[@RiccardoPalombo]

Thanks for reuploading it

[@davidm2364]

Excellent work. Question: what is the source of the interview at 20:53?

[@PandaMoniumReviews]

I conducted that interview alongside a translator known online as SamIAm. It is used in my Virtua Cop documentary: kzbin.info/www/bejne/haOwooyMd5p6Y5Ysi=Ex-PU-EFK3bJiBrk

[@abborne1]

Eh, well... unsold 32Xs becoming drawing tablets is pretty mundane compared to unsold Atari Jaguars becoming dental x-ray equipment.

[@JamesChatting]

And Jaguar CDs becoming toilet seats

[@DestinyZX1]

@@JamesChattingi have no words

[@TheDeenactor]

This is one of the best videos on the Sega Saturn to date. It really shows how even before the Saturn Sega was in huge trouble. Only issue I have with the video is that you said that the Sega Saturn was originally a 2d machine which I incline to disagree. I really hope you make a sequel of this video because this is truly a modern classic especially when it’s about my favorite 64 bit system

[@PandaMoniumReviews]

Thank you for the kind words. To your concerns about what was said about its origins: More recent interviews with Sega of Japan higher ups show that Saturn was initially designed to lean more into 2D. They gradually enhanced its 3D capabilities over time, and eventually added the second SH-2.

[@TheDeenactor]

I have a question there’s this video by sixty rgb in which he said that the Saturn was a 3D machine at the start with hardware was based on thier arcade machine. I’m not sure if it’s true but I find it more compelling to why the Saturn was hard to develop. Problem is that it’s not well backed up. Is it possible that the Saturn was became a 3D machine through their experience with the Sega model 2 arcade broad

[@OhKayEl]

Saturn is 32-bit lol.

[@TheDeenactor]

@@OhKayEl Sega Saturn doesn’t look 32 bit. Are you referring to the 2d games

[@OhKayEl]

@@TheDeenactor Are you trying to tell me that the Saturn is in the same generation as the N64? Bro, it doesn't even have texture filtering and mipmapping just like the PlayStation, its "3D" is really just scaled and skewed sprites, also the N64 is turing complete.

[@JomasterTheSecond]

That folder is like the Ark of the Covenant. If you open it up and gaze upon it, death surely follows.

[@lucianoliberati8925]

Top tier content as always.

[@CTFC-GERMANY]

That stuff was eye-opening. Awesome hq content. Maybe the best docu i ever saw.

[@cmdrfokker]

This video basically silences all the people who insist that Sega's exit from the console market was predicated on the "bullying" from any of the existing current Big 3. In the end, it was all Sega. With better decisions in hardware and software, I think they'd still be in the market today. They had, and still have, the IP catalogue comparable to Sony or Nintendo. If they hadn't fumbled the bag so badly, it'd be a different world. As someone who snagged a Dreamcast at launch as their first-ever Sega system (was more of a Nintendo/Playstation kid), it blew me away with how awesome it was... and also shocked me with how quickly Sega seemed to throw in the towel. I didn't follow sales numbers much back then, didn't know much about how the industry worked. I certainly didn't know just how bad Sega's situation was at the time. After all, how could the system with Soul Calibur, Shenmue, Sonic Adventure 1 and 2, all those amazing Capcom ports, struggle at all? This is video is a great recap of where the real damage started. It's also remarkably... sad to watch.

[@snapdragonzoroark]

Nobody blames Sony or Nintendo for segas exit from the console market

[@cmdrfokker]

@@snapdragonzoroark Objectively untrue, if I had a nickel every time I saw someone parrot this nonsense on enthusiast forums for the past year alone, I could take a week off from work and still end up having made more money from the tears of misinformed gamers.

[@JamesChatting]

​@@cmdrfokkeryou're too invested in what people on forums write

[@Maipop]

good to see this back

[@IanThunderbolt]

Well as if needed an excuse to watch this masterclass again. Sorry about the dispute man.

[@LazyScoutJace]

I remember my mom buying my brother and I a Sega Saturn in mid-97 at Toys-R-Us. The cashier guy said, "are you suuuuuure you actually wanna buy this? They're not even making games for it any more" We had no idea our beloved SEGA was in shambles at this point and still pressed on. Still happy we made thwt decision 😅

[@astrobollo]

Wow, they didn't take any advice from Tom Kalinske's pointers when making those TV ads for the Saturn. It's like in SOA weren't paying any attention to him at that point... Good!

[@wetfeathers9971]

Been going through your catologue and came across this. I was always told tuat the dreamcast just simply came out too little to late with no cutting edge tech under the hood, so it killed the company. I had no clue sega was doing *this* badly with inventory. I hope more of these portfolios surface, id love to see you do more of these showing the health of segas fianances all the way up to the end. Wonderful stuff!

[@Karxrida]

Gonna repost an approximation of my comment on the previous version. Was Stolar given an awful hand? Yes, and this proves as much. However, he still didn't even attempt to bluff with the hand he was given and just gave up. I don't envy the position he was in, but I can still condemn his lack of effort.

[@DestinyZX1]

He had to be brutal.

[@liquidsnake6879]

All due respect to Kallinske but he's full of it, there's no way nobody would've listened to him after the Genesis and that Japan would've just FORCED him against his will to release the Saturn without games early. It's far more likely that it was entirely his decision and deliberate, and that because it ultimately failed, he doesn't want to be seen as responsible for it. I do believe SOJ prioritized it's own domestic market over the USA, but a lot of the fumbles were on Kallinske. It was SOA that decided RPGs were not suited to American tastes, it was SOA that decided to launch early without informing various key partners, it was SOA that fumbled the development of Saturn Sonic. For anyone to believe Kallinske, you need to believe that SOJ actively attempted to boycott it's own American operation, which is just silly, nobody in Japan told Kallinske he couldn't develop Sonic, on the contrary, they funded and supported STI and basically handed the Sonic IP over to SOA to handle as they saw fit, it was SOA that fumbled Sonic Xtreme. The only thing they can complain about is that Yuji Naka didn't want them using the NiGHTS engine and that, not wanting to anger him and his team, SOJ complied and sided with him. But even then it's not industrial sabotage on SOJs part, imo, STI shouldn't have even needed the NiGHTS engine and by the time they requested it, they had already fumbled their own development

[@TheEmery223]

That may ultimately be, but Kalinske did make the crucial decision early on to discount the Genesis/Mega Drive and bundle Sonic the Hedgehog as a pack-in, which not only drove hardware sales significantly, but also purchasing of Sonic the Hedgehog as an attach otherwise. He does deserve credit there.

[@avalond1193]

Sega of Japan were responsible for alot of the bad decisions you underestimate how much jealousy Japan had for Sega of America it was them that kept Saturn under wraps not telling their us branch anything about the console till it was too late, it was them that demanded 32x to compete with Atari of all things, it was Japan that rejected the hardware that would be the N64.. imagine if sega would of embrace it and unlike Nintendo made it CD based instead of cartridges. Etc

[@gipgap4]

@@avalond1193yeah, fully agree.

[@J.Wick.]

I started to say,,, I know I remember watching, liking, and commenting on this excellent video. Sorry for the CR thing...That sucks. Fantastic video. History.

[@PandaMoniumReviews]

Thanks dude. I’m not too concerned about the copyright tag, it’s just par for the course with KZbin.

[@J.Wick.]

@@PandaMoniumReviews Yeah.. That's what I hear lately. Sucks for those who put alot of effort into their content. Regardless, liked, commented, again. Keep up the great work. Cheers!

[@penguinreloaded7756]

When the documents were first released, I poured over them with fascination. There were just SOOO many disasterous decisions made by Sega. It did not have to end like it did. The 32X... just baffling. The Saturn archetecture and US launch... unfathomable idiocracy. Sony & Sega working on a machine together had potential... but I imagine Sega would have sabotaged that as well. - The Saturn: launch it with the original planned date at $299. When it became clear that you had made a poor choice with your hardware design, pivot to being a niche machine. Bring all the cool Japanese games over; it could have been an RPG behemoth. - The Dreamcast is a wonderful machine, but it was too little too late, and Sega had eroded trust with a large portuon of consumers. The 32X was such a terrible decision.

[@kb4121]

The 32x was a mistake even young me didn’t see the point in it and waited for Saturn

[@madly909]

Amazing video

[@BlueMoonXtreme]

Excellent re-upload of an excellent video.

[@FlyingDuckMan360]

I wish I could live in an alternate dimension where it was the PlayStation 1 that was the commercial failure and the Saturn was in steady competition with the Nintendo 64. I never liked the PS1 for many reasons; besides being a key factor in Sega leaving the console wars in 2001, they rely way too heavily on third-party support while Sega and Nintendo make their own games, and their button scheme is different from every other major console on the market. I'm not going to deny that Sega's North American and Japanese branches needed to work together as a team instead of competing against each other, and that Sega needed to focus more on the Saturn and less on the 32X, but I do feel they could have had a better chance if Sony hadn't interfered.

[@BigGainer98]

Sega is the reason for their downfall and I say that as someone who is a huge Saturn fan. My favorite console ever. It was piss poor marketing, abandoning sports games and no Sonic game which by the way were the only reason the Genesis made a profit. The Sega CD and 32X should have never existed. They only gutted their finances and gave the Saturn a poor reputation from angry gamers who moved the Playstation entirely. All that R&D from the CD and 32 for nothing but waste.

[@XbandTv]

Love the David Lynch vibes in the intro.

[@humanice2]

Good editing, informative, great video

[@bpcgos]

TLDR; Its just another butterfly effect, the buyback requirement need to be agreed due to the necessity of putting Sega games in the biggest chain in US for the purpose of visibility. SOA still need to be reliant to Genesis because they also need to sold that buyback inventory, but of course generation just step forward and everyone wanted new shiny toy as their christmas presents, so just a few bought Genesis . What I didn't understand of course 32X, it just didnt make sense in both scenario I mentioned and that probably explained the dispute occured between SOJ and SOA regarding to the what inside the next gen Sega machine explained by Tom Kalinske.

[@shadowrunner3k94]

Great doc, loved it

[@ricardorodriguez-mi2zv]

As a customer what killed sega was the sega cd 32X double hit. I bought both and after realising that sega would just take the money and make no games I swore off sega as a reliable company, and when a neighbor bought a saturn in 1996 only to be left without support just a little time later, that was all the confirmation I needed

[@cinnamondan4984]

Awful that you got copy right stricken. Not cool.

[@RaydinAE11]

Gotta love those lofi 80s tunes.

[@mohammedganai9636]

I still think Bernie should have never Osborne'd the Saturn the way he did and left SoA with no presence for a year while having Dreamcast pushed out a year earlier in Japan, the area where Saturn was doing well. Not to mention mandating the $199 launch price for the DC at the literal expense of much needed profits. (Not to mention all the cockblocked 2d and RPG games.)

[@GamingTeacher]

Re-adding my comment: pfft. DEFCON 5 means “world peace,” so that general is overreacting for nothing.

[@NoelComiX]

Bones voice actor=life goals

[@RussellSenpai]

Oh boy another excuse to watch FY 1997 again. Even more fun given Microsoft's handling of similar documents recently.

[@onthedre]

Those Saturn Commercials were excellent. If I saw that Panzer Dragoon Gameplay along with an AD that had a story, I would definitely want one WAY more than the playstation.

[@enjoylife6374]

bravo, amazing video, looking forward for more reviews and docs, subsribed

[@Usselman]

Very well done video