budgets of games such as Squaresoft's Final Fantasy VII and Sega's Shenmue. Transition to optical media By end of the 1980s, console games were distributed on ROM cartridges, while PC games shipped on floppy disks, formats that had limitations in storage capacity. Optical media, and specifically the CD-ROM, had been first introduced in the mid-1980s for music distribution and by the early 1990s, both the media and CD drives had become inexpensive to be incorporated into consumer computing devices, including for both home consoles and computers. Besides offering more capacity for gameplay content, optical media made it possible to include long video segments into games, such as full motion video, or animated or pre-rendered cutscenes, allowing for more narrative elements to be added to games. Prior to the 1990s, some arcade games explored the use of laserdiscs, the most notable being Dragon's Lair in 1983. These games are considered as interactive movies and used full motion video from the laserdisc, prompting the player to respond via controls at the right time to continue the game. While these games were popular in the early 1980s, the prohibitive cost of laserdisc technology at the time limited their success. When optical media technology matured and dropped in price by the 1990s, new laserdisc arcade games emerged, such as Mad Dog McCree in 1990. Pioneer Corporation released the LaserActive game console in 1993 that used only laserdiscs, with expansion add-ons to play games from the Sega Genesis and NEC TurboGrafx-16 library, but with a base console price of and add-ons at , the console did not perform well. For consoles, optical media were cheaper to produce than ROM cartridges, and batches of CD-ROMs could be produced in a week while cartridges could take two to three months to assemble, in addition to the larger capacity. Add-ons were made for the 16-bit consoles to use CD media, including the PC Engine and the Mega Drive. Other manufacturers made consoles with dual-media, such as NEC's TurboDuo. Philips launched the CD-i in 1990, a console using only optical media, but the unit had limited gaming capabilities and had a limited game library. Nintendo had similarly worked with Sony to develop a CD-based SNES, known as the Super NES CD-ROM, but this deal fell through just prior to its public announcement, and as a result, Sony went on to develop to the PlayStation console released in 1994, that