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When Nintendo launched its Super Nintendo Entertainment System in North America in August 1991, Sega changed its slogan to "Welcome to the next level." The same year, Sega of America's leadership passed from Katz to Tom Kalinske, who further escalated the "console war" that was developing.As a preemptive strike against the release of the SNES, Sega re-branded itself with a new game and mascot, Sonic the Hedgehog.After the war, the founders sold that company and established a new distributor called Service Games, named for the military focus.In 1951, the government of the United States outlawed slot machines in US territories, so Bromley sent two of his employees, Richard Stewart and Ray Le Maire, to Tokyo, Japan, in 1952 to establish a new distributor.UFO Catcher was introduced in 1985 and is Japan's most commonly installed claw crane game.

They saw that the onset of World War II, and the consequent increase in the number of military personnel, would mean there would be demand for something for those stationed at military bases to do in their leisure time.

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.

Sega also released the 360-degree rotating machine R-360.

For arcade system boards, Sega released the System series and the Super Scaler series.

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