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However, the Master System was highly successful in Europe, Australia, New Zealand, and Brazil with games still being sold well into the 1990s alongside the Mega Drive and Nintendo's NES and SNES.In the mid-1980s, Sega released Hang-On and After Burner, arcade titles that make use of hydraulic cabinet functionality and force feedback control.

The Atari 8-bit computer port of Zaxxon is from Datasoft, for example, while the Commodore 64 port is from Synapse.

An overabundance of games in 1983 led to the video game crash, causing Sega's revenues to drop to $136 million. assets of Sega Enterprises that same year to pinball manufacturer Bally Manufacturing, and in January 1984, Rosen resigned his post with the company.

Nonetheless, Sega remains the world's most prolific arcade producer, with over 500 games in over 70 franchises on more than 20 different arcade system boards since 1981.

Sega, along with their sub-studios, are known for their multi-million selling game franchises, such as Sonic the Hedgehog, Virtua Fighter, Phantasy Star, Yakuza, and Total War. Sega's North American division, Sega of America, is headquartered in Irvine, having moved there from San Francisco in 2015.

After the war, the founders sold that company and established a new distributor called Service Games due to military focus.

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