The video game console war of the 1980s and 1990s were a defining time for the industry. From humble beginnings in arcades, gaming was becoming a rapidly growing market worldwide. The 90s saw the rise in PC gaming, 3D graphics, the rise and fall of Sega, and birth of Sony’s PlayStation. The tribalistic battle between Nintendo and Sega was a wild and exciting time for gamers.
Behind the pixels and polygons lied a series of aggressive marketing and business decisions that were ruthless, radical, and at times foolhardy. Such practices would shape the gaming industry and guide the future generations of game developers and advertising to come.
The Genesis of a Rivalry
Throughout the 1980s, Nintendo ruled the video game market with an iron grip. Having garnered success through franchises like Super Mario Bros. and The Legend of Zelda, Nintendo had no equal when it came to dynamic, family-orientated games. Their popular console at the time was the Nintendo Entertainment System (NES), reviving the industry after the market stagnated in the 1983 crash in North America.
Sega had been manufacturing arcade games but sought to enter the console market. However, their first few attempts, such as the Master System, were no match for Nintendo’s established library. To stand a better chance, Sega developed their next console, called the Sega Genesis (or Mega Drive outside of America). The key selling point of the Genesis was its enhanced speed and graphics. During its development, Sega of America was founded to sell in the United States.
The company’s CEO, Michael Katz, adopted an aggressive advertising strategy to promote the Genesis as the hipper console, producing games more aimed at teenagers than Nintendo. Their most infamous slogan was “Genesis Does What Nintendon’t”, whilst the “Sega Scream” TV campaign set the bar for all dramatic game advertisements to come.
The Blue Blur
Katz was replaced with Tom Kalinske, formerly of Mattel Toys, who approached the market with a four-point plan that included cutting the Genesis’ prices, continue the anti-Nintendo campaigns, and create new exclusive games for the console. The Japanese executives were critical of this business plan, but approved it for a period. Sega of America’s success was suggested to have been envied by Sega of Japan.
What Sega needed was a new iconic character to rival Mario. The Genesis was a faster console than the NES, so speed became a quintessential part of a new title game. Thus, Sonic the Hedgehog was released in 1991, starring a blue, supersonic hedgehog who embodied 90s attitude. Sonic was bundled with newly bought Genesis consoles, quickly dominating the American market. Sonic became the face of the TV campaigns, fuelling the notion that the Genesis was the cooler console to own, even when Nintendo released the SNES in the same year.
Nintendo noticed they were losing ground, pursuing their own aggressive campaign to promote the SNES’ features as superior to that of the Genesis. Sega found further success with the unedited release of Mortal Kombat, whilst Nintendo released a bloodless version of the game. Wishing to capitalise on Sonic’s succession, Sonic the Hedgehog 2 was released a year later, on a “Sonic 2sday” to roaring success.
Betrayal and Birth
Sony Computer Entertainment was looking to pioneer CD-ROM technology in a new partnership with Nintendo. The plan was to develop a CD add-on to the SNES called the Super NES CD-ROM. However, Nintendo president Hiroshi Yamauchi was suspicious of Sony’s plans and leverage over the technology.
At the 1991 Consumer Electronics Show, Sony announced their plans for the Super NES CD-ROM. The next day, Nintendo shocked Sony and the gaming industry by announcing it had partnered with Philips to make the CD-I, a new console with the same purpose as Sony’s. Attempts were made to resolve the conflict, but to no avail. Sony briefly turned to Sega, but no deals were made. Instead, Sony president Norio Ohga and engineer Ken Kutagari decided to create their own console, one that utilised the CD-ROM and 3D graphics: The PlayStation. As for the CD-I, it found little success on the market; its Nintendo licensed games have been immortalised in internet memes.
The Price of Power
Sega’s success with the Genesis led to the development of the Game Gear, and their first CD-based console, the Sega CD, which made a respectable profit. It was marked with controversy from the game Night Trap, which had scenes considered violent against women. Its own add-on, the reviled 32X, was rushed to market as a commercial failure. Sega’s next console was the Sega Saturn, a product of mismanagement and bruised egos. The console, released first in Japan, was praised for its original games, such as NiGHTS into Dreams and Panzer Dragoon. However, its American launch brought the Saturn crashing back to earth.
In the wake of the PlayStation’s release, plans were made to hurry along the Saturn’s availability. Tom Kalinske announced the Saturn would be released on a “Saturnday” in September 1995. But, at the inaugural E3 (Electronic Entertainment Expo), Kalinske instead announced the console would be released that very day on May 11th. Retailers had no time to promote the Saturn, refusing to sell it. A lack of early game releases and a price of £399 further alienated consumers.
The next day at E3, Sony addressed the same audience, focusing on the PlayStation’s technical specs. Then, in what could be described as the first “mic drop” in E3 history, Sony’s Steve Race approached the podium, said “$299”, and walked off to rapturous applause. The PlayStation launched shortly thereafter, becoming one of the most successful launches in video game history. Sony would have greater success with the PlayStation 2.
Sony would become Nintendo’s new rival, alongside Microsoft’s Xboxes. Sega would bow out of the console market, solely becoming a third-party publisher, but on better terms with its former competitors.
Gaming Expos
Most of these marketing decisions played out at gaming and technology expos like CES and the defunct E3. E3 had remained the go-to, yearly event for all major gaming announcements. A shift in interests led to its slow, unfortunate decline. Still, there are still plenty of gaming-related events around the world, such as EAG International Expo, ICE, and G2E Global Gaming Expo. Companies can attract consumers not just with their games, but eye-catching exhibition stands. Such companies like Quadrant2Design, a UK-based exhibition stand designer, build custom-modular stands for clients at these gaming expos, using displays that are sustainable, reusable, bespoke and effective.
To Sum Up
The marketing decisions made during the 90s console war had a profound impact on the gaming industry. The aggressive rivalry between Nintendo and Sega, the introduction of iconic characters like Sonic the Hedgehog, and the unexpected birth of the PlayStation all contributed to shaping the future of video games. These decisions not only influenced the success of individual consoles but also set the stage for the modern gaming landscape we know today. The 90s console war will forever be remembered for the innovative marketing strategies and fierce competition that drove the industry forward.
