Warner New Media to develop a CD player under the CD+G standard. Sega of America was not informed of the project details until mid-1991. Despite being provided with preliminary technical documents earlier in the year, the American division was not given a functioning unit to test. According to former executive producer Michael Latham, "When you work at a multinational company, there are things that go well and there are things that don't. They didn't want to send us working Sega CD units. They wanted to send us dummies and not send us the working CD units until the last minute because they were concerned about what we would do with it and if it would leak out. It was very frustrating." Latham and Sega of America vice president of licensing Shinobu Toyoda assembled a functioning Sega CD by acquiring a ROM for the system and installing it in a dummy unit. The American staff were frustrated by the Sega CD's construction. Former senior producer Scot Bayless said: "[It] was designed with a cheap, consumer-grade audio CD drive, not a CD-ROM. Quite late in the run-up to launch, the quality assurance teams started running into severe problems with many of the units—and when I say severe, I mean units literally bursting into flames. We worked around the clock, trying to catch the failure in-progress, and after about a week we finally realized what was happening." He said the problems were caused by the need for games to use more time-seeking data than the CD drive was designed to provide. Launch As early as 1990, magazines were covering a CD-ROM expansion for the Genesis. Sega announced the release of the Mega-CD in Japan for late 1991, and North America (as the Sega CD) in 1992. It was unveiled to the public at the 1991 Tokyo Toy Show, to positive reception from critics, and at the Consumer Electronic Show in Chicago in mid-1991. It was released in Japan on December 12, 1991, initially retailing at JP¥49,800. Though the Mega-CD sold quickly, the small install base of the Mega Drive in Japan meant that sales declined rapidly. Within its first three months, the Mega-CD sold 200,000 units, but only sold an additional 200,000 over the next three years. Third-party game development suffered because Sega took a long time to release software development kits. Other factors affecting sales included the high launch price of the