Mastertronic was originally a publisher and distributor of low-cost computer game software founded in 1983. Their first games were launched on April 2nd, 1984. At its peak the label was one of the largest software publishers in the UK, achieved by selling cassette-based software at £1.99. As well as supplying leading retailers such as Woolworth's and Toys "R" Us, Mastertronic sold software in outlets such as newsagents which had not been previously associated with the software market. Their range of budget games were incredibly successful during the 1980s, with titles such as Kikstart, Action Biker, Finders Keepers, Chiller and Flash Gordon (released under the M.A.D. Label). Later diversification included the setting up of US operations to source and distribute their software, as well as an unsuccessful arcade games division (Arcadia Systems). However, it was their decision to market the Sega Master System in the UK that ultimately proved most successful. It resulted in the Master System selling much better than its rival, the NES than in many other territories and was cited by some as Virgin Group's reason for investing in the company (and later buying it outright). As the budget software market declined, the Sega hardware distribution became the dominant part of the business, and the company was eventually merged into Sega itself. Although the original company no longer exists, the rights to the name were acquired by another company, Mastertronic Group, formed in 2006 as a result of a merger of The Producers and Sold Out Sales & Marketing with Frank Herman, one of the founders of the original company, as its chairman. History In 1983 Martin Alper, Frank Herman, Terry Medway and Alan Sharam founded the computer game publishing company Mastertronic. The four had some financial backing from a small group of outside investors and previous experience in video distribution. Their initial venture involved bundling packages of 100 tapes ("dealer packs") and sending them to newsagents, toy shops, motorway service stations, or just about anyone who would take them. Another key figure at the time was ex-Notts Cricket batsman Richard Bielby, who ran a distribution network servicing a large number of small retailers. New labels, expansion and diversification In late 1985 Mastertronic launched their Mastertronic Added Dimension (M.A.D.) label to sell games at a slightly higher price (£2.99). The first game was The Last V8 and many more were soon to follow including Knight Tyme and 180.