 Released in 1988 , the Genesis ( known as the Mega Drive in Europe and Japan ) was Sega 's entry into the fourth generation of video game consoles . In mid @-@ 1990 , Sega CEO Hayao Nakayama hired Tom Kalinske as president and CEO of Sega of America . Kalinske developed a four @-@ point plan for sales of the Genesis : lower the price of the console , create a U.S.-based team to develop games targeted at the American market , continue aggressive advertising campaigns , and sell Sonic the Hedgehog with the console . The Japanese board of directors initially disapproved of the plan , but all four points were approved by Nakayama , who told Kalinske , " I hired you to make the decisions for Europe and the Americas , so go ahead and do it . " Magazines praised Sonic as one of the greatest games yet made , and Sega 's console finally took off as customers who had been waiting for the Super Nintendo Entertainment System ( SNES ) decided to purchase a Genesis instead . However , the release of a CD @-@ based add @-@ on for the Genesis , the Sega CD ( known as Mega @-@ CD outside of North America ) , had been commercially disappointing . 
