104: Three Numbers That Ruined Sega
Written by Dr. Dizaster

E3, 1995. Finally getting away from the more and more cramped Consumer Electronics Show, the game industry finally has enough of a voice to warrant its own trade show, E3. Of course, the big draw for the show is the Saturn and Playstation, two of the biggest announcements to hit the industry in years.
Sega takes the podium in a room full of industry types, everything from CEO's to Ad Men to Distribution heads. Sega's man evangelizes for the sake of the Saturn, claiming that it'll be the next greatest thing, saying how well it does polygons and how smooth its sprites are. Trying to be a poor man's 3DO, Sega believes itself to be cutting close to the consumer curve with a tag of $399, nearly half 3DO's.

And then the Sega rep says that it's already shipped to four of its "preferred" channels, Toys R Us to name but one. All other channels, he says, will have to wait until the system's "official" release date a month or so later.

It is reported that the Distribution Head for Kay-Bee Toys (who was *not* on the list) turned to his assistant upon hearing the speech and said "Fuck them. I want everything with Sega's name on it out of our warehouses tomorrow."

The Sega rep concludes his impassioned pitch and gave up the podium to polite applause. Sony's Playstation rep comes up to the podium with a small stack of papers in hand, ostensibly notes extolling Playstation's virtues. Instead, he pauses for a moment, leans into the microphone, and ruins the Saturn's chances with three numbers.

"Two ninety-nine."

The sony rep leaves the stage to a standing ovation, and Saturn hears its death knell. Their entire strategy hinged on being cheaper than playstation, yet Sony was now offering more system for less money. And as history has proven, it was all downhill from there.
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