A Close Look at SEGA & Parent Company CSK

2023-08-03SaturnDave2 Comments

CategoriesSpotlight

Alex Smith of They Create Worlds, a podcast focused on documenting the video game industry as a whole, has released a two-part series on SEGA and its parent conglomerate, CSK Corporation (Computer Service Kabushiki-Kaisha). The series offers a well-researched and nuanced look at Isao Okawa, the owner of CSK & subsidiary SEGA Enterprises and the ultimate downfall of SEGA during the Dreamcast era.

Part 1 covers the origin of CSK and major players involved, Okawa’s bold move to pivot CSK during uncertain times, the purchase of SEGA from Gulf and Western, the decade-long corporate transition from U.S. company to a traditional Japanese company, and SEGA becoming publicly traded in Japan.

Vectrex – They Create Worlds

TCW Podcast Episode 262 – Vectrex   The Vectrex came with its own screen, plastic color overlays, and roots in the aerospace industry. GCE brought Smith Engineering in to design and develop digital watch games, then calculator games, before the two companies set their sights on a full home console. That console had to include its own display because home televisions could not support vector graphics. The idea took shape when engineer John Ross came across a one-inch CRT designed for aircraft instruments, and that sparked the push toward a vector-based home console. GCE knew they were too small to compete in a saturated market on their own, so they sought out a larger company with the manufacturing and marketing muscle to give the Vectrex a real shot. Milton Bradley acquired GCE in September 1982. The Vectrex launched at $199 that holiday season, right into the Video Game Crash, and cost Milton Bradley $31.6 million before Hasbro bought what was left in 1984.   TCW 199 – The History of Handheld Games Part 2: https://www.theycreateworlds.com/episodes/TCW199-the-history-of-handheld-games-part-2 Major Matt Mason: https://www.youtube.com/watch?v=4sNoiDT0BMw Creepy Crawlers: https://www.youtube.com/watch?v=sJOd3pPUcEo TCW 025 – Matel Electronics?: https://www.theycreateworlds.com/episodes/TCW025-mattel-electronics TCW 177 – The Intellivision Part 1: https://www.theycreateworlds.com/episodes/TCW177-the-intellivision-part-1 TCW 178 – The Intellivision Part 2: https://www.theycreateworlds.com/episodes/TCW178-the-intellivision-part-2 GCE Game Time Watch: https://www.youtube.com/watch?v=-Bf1ShRP0sU GCE Arcade Time Watch: https://www.youtube.com/watch?v=6sgPMbbyfyw GCE Sports Time Watch: https://www.youtube.com/watch?v=w9K0Ty5MVr0 GCE Chase N Counter: https://www.youtube.com/watch?v=HeXaPOwrPq4 GCE Space N Counter: https://www.youtube.com/watch?v=OXaBH2hVnZ4 TCW 009 – The History of Mediagenic Part 1: https://www.theycreateworlds.com/episodes/TCW009-history-of-mediagenic-part-1 TCW 010 – The History of Mediagenic Part 2: https://www.theycreateworlds.com/episodes/TCW010-history-of-mediagenic-part-ii TCW 225 – Games By Apollo: https://www.theycreateworlds.com/episodes/TCW225-games-by-apollo Towering Inferno (Atari): https://www.youtube.com/watch?v=s9E4xYtUmqE Entombed (Atari): https://www.youtube.com/watch?v=6D21cBQ8zPI TCW 080 – Vector Lights: https://www.theycreateworlds.com/episodes/TCW080-vector-lights TCW 133 – Rolling Dice With The Parker Brothers: https://www.theycreateworlds.com/episodes/TCW133-rolling-dice-with-the-parker-brothers Mine Storm: https://www.youtube.com/watch?v=8jPFGKVyD6E Starhawk: https://www.youtube.com/watch?v=pjv6lnt98zY Solar Quest: https://www.youtube.com/watch?v=NzPwfY82Aok Rip Off: https://www.youtube.com/watch?v=0d-fcGnMpI8 Space Wars: https://www.youtube.com/watch?v=tTxl8WAr2WI Armor Attack: https://www.youtube.com/watch?v=bAShNvM8I9U Blitz: https://www.youtube.com/watch?v=9qend3Al4Rw Star Trek: https://www.youtube.com/watch?v=Gzrsb5c8dB4 Cosmic Chasm: https://www.youtube.com/watch?v=PkaDXjOKMv0 Cosmic Chasm (Arcade): https://www.youtube.com/watch?v=S-9ZRSs2ATU Berzerk: https://www.youtube.com/watch?v=tarHYgKekeI Scramble: https://www.youtube.com/watch?v=3tDBZwoiblQ Hyperchase: https://www.youtube.com/watch?v=nvHKW7dnIUs Clean Sweep: https://www.youtube.com/watch?v=l2jpYm6ZwIs Vectrek Accessories: https://www.youtube.com/watch?v=t9LLEJ63_Rw Star Castle: https://www.youtube.com/watch?v=29ZYcNK_Fe4 Spinball: https://www.youtube.com/watch?v=xpT29NOsASw Fortress of Narzod: https://www.youtube.com/watch?v=MYiWPBljWHk Spike: https://www.youtube.com/watch?v=UNsyOWHQ71s Pole Position: https://www.youtube.com/watch?v=OfxKt4iZgRc     New episodes are on the 1st and 15th of every month!   TCW Email: feedback@theycreateworlds.com  BlueSky: @theycreateworlds.bsky.social Patreon: https://www.patreon.com/theycreateworlds Alex's Video Game History Blog: http://videogamehistorian.wordpress.com Alex's book: http://bit.ly/TCWBOOK1   Intro Music: Josh Woodward – Airplane Mode –  Music – "Airplane Mode" by Josh Woodward. Free download: http://joshwoodward.com/song/AirplaneMode  Outro Music: RoleMusic – Bacterial Love: http://freemusicarchive.org/music/Rolemusic/Pop_Singles_Compilation_2014/01_rolemusic_-_bacterial_love    Copyright: Attribution: http://creativecommons.org/licenses/by/4.0/
  1. Vectrex
  2. Starfox
  3. Vivendi Electric Boogaloo
  4. A Cendant to Vivendi
  5. The Shenanigans of CUC Software

Part 2 examines the circumstances leading to Okawa’s direct control as CEO of SEGA and the financial difficulties resulting from SEGA’s internal money lending, Okawa’s dream to make CSK and SEGA more network focused and his planned contingencies for potential failure.

Vectrex – They Create Worlds

TCW Podcast Episode 262 – Vectrex   The Vectrex came with its own screen, plastic color overlays, and roots in the aerospace industry. GCE brought Smith Engineering in to design and develop digital watch games, then calculator games, before the two companies set their sights on a full home console. That console had to include its own display because home televisions could not support vector graphics. The idea took shape when engineer John Ross came across a one-inch CRT designed for aircraft instruments, and that sparked the push toward a vector-based home console. GCE knew they were too small to compete in a saturated market on their own, so they sought out a larger company with the manufacturing and marketing muscle to give the Vectrex a real shot. Milton Bradley acquired GCE in September 1982. The Vectrex launched at $199 that holiday season, right into the Video Game Crash, and cost Milton Bradley $31.6 million before Hasbro bought what was left in 1984.   TCW 199 – The History of Handheld Games Part 2: https://www.theycreateworlds.com/episodes/TCW199-the-history-of-handheld-games-part-2 Major Matt Mason: https://www.youtube.com/watch?v=4sNoiDT0BMw Creepy Crawlers: https://www.youtube.com/watch?v=sJOd3pPUcEo TCW 025 – Matel Electronics?: https://www.theycreateworlds.com/episodes/TCW025-mattel-electronics TCW 177 – The Intellivision Part 1: https://www.theycreateworlds.com/episodes/TCW177-the-intellivision-part-1 TCW 178 – The Intellivision Part 2: https://www.theycreateworlds.com/episodes/TCW178-the-intellivision-part-2 GCE Game Time Watch: https://www.youtube.com/watch?v=-Bf1ShRP0sU GCE Arcade Time Watch: https://www.youtube.com/watch?v=6sgPMbbyfyw GCE Sports Time Watch: https://www.youtube.com/watch?v=w9K0Ty5MVr0 GCE Chase N Counter: https://www.youtube.com/watch?v=HeXaPOwrPq4 GCE Space N Counter: https://www.youtube.com/watch?v=OXaBH2hVnZ4 TCW 009 – The History of Mediagenic Part 1: https://www.theycreateworlds.com/episodes/TCW009-history-of-mediagenic-part-1 TCW 010 – The History of Mediagenic Part 2: https://www.theycreateworlds.com/episodes/TCW010-history-of-mediagenic-part-ii TCW 225 – Games By Apollo: https://www.theycreateworlds.com/episodes/TCW225-games-by-apollo Towering Inferno (Atari): https://www.youtube.com/watch?v=s9E4xYtUmqE Entombed (Atari): https://www.youtube.com/watch?v=6D21cBQ8zPI TCW 080 – Vector Lights: https://www.theycreateworlds.com/episodes/TCW080-vector-lights TCW 133 – Rolling Dice With The Parker Brothers: https://www.theycreateworlds.com/episodes/TCW133-rolling-dice-with-the-parker-brothers Mine Storm: https://www.youtube.com/watch?v=8jPFGKVyD6E Starhawk: https://www.youtube.com/watch?v=pjv6lnt98zY Solar Quest: https://www.youtube.com/watch?v=NzPwfY82Aok Rip Off: https://www.youtube.com/watch?v=0d-fcGnMpI8 Space Wars: https://www.youtube.com/watch?v=tTxl8WAr2WI Armor Attack: https://www.youtube.com/watch?v=bAShNvM8I9U Blitz: https://www.youtube.com/watch?v=9qend3Al4Rw Star Trek: https://www.youtube.com/watch?v=Gzrsb5c8dB4 Cosmic Chasm: https://www.youtube.com/watch?v=PkaDXjOKMv0 Cosmic Chasm (Arcade): https://www.youtube.com/watch?v=S-9ZRSs2ATU Berzerk: https://www.youtube.com/watch?v=tarHYgKekeI Scramble: https://www.youtube.com/watch?v=3tDBZwoiblQ Hyperchase: https://www.youtube.com/watch?v=nvHKW7dnIUs Clean Sweep: https://www.youtube.com/watch?v=l2jpYm6ZwIs Vectrek Accessories: https://www.youtube.com/watch?v=t9LLEJ63_Rw Star Castle: https://www.youtube.com/watch?v=29ZYcNK_Fe4 Spinball: https://www.youtube.com/watch?v=xpT29NOsASw Fortress of Narzod: https://www.youtube.com/watch?v=MYiWPBljWHk Spike: https://www.youtube.com/watch?v=UNsyOWHQ71s Pole Position: https://www.youtube.com/watch?v=OfxKt4iZgRc     New episodes are on the 1st and 15th of every month!   TCW Email: feedback@theycreateworlds.com  BlueSky: @theycreateworlds.bsky.social Patreon: https://www.patreon.com/theycreateworlds Alex's Video Game History Blog: http://videogamehistorian.wordpress.com Alex's book: http://bit.ly/TCWBOOK1   Intro Music: Josh Woodward – Airplane Mode –  Music – "Airplane Mode" by Josh Woodward. Free download: http://joshwoodward.com/song/AirplaneMode  Outro Music: RoleMusic – Bacterial Love: http://freemusicarchive.org/music/Rolemusic/Pop_Singles_Compilation_2014/01_rolemusic_-_bacterial_love    Copyright: Attribution: http://creativecommons.org/licenses/by/4.0/
  1. Vectrex
  2. Starfox
  3. Vivendi Electric Boogaloo
  4. A Cendant to Vivendi
  5. The Shenanigans of CUC Software

With Okawa’s passing in 2001, CSK shifted in a financial services direction, and ended up selling their stake in SEGA to Sammy, who then used this leverage to completely buy out SEGA a year later.

Alexander Smith is a reference librarian with a background in history, research, and law who has been delving into the history of the video game industry for over ten years. He has played a crucial role in the preservation of certain documents and artifacts in early video game history and has conducted over 100 oral history interviews with key executives in the evolution of the industry. Currently, he co-hosts a bi-monthly podcast dedicated to the history of the industry (also called “They Create Worlds”) and serves as a researcher and consultant for the Video Game Pioneers Archive oral history project of the Smithsonian Institution.

Smith claims his information is derived from “rare primary sources” including little-studied trade publications, personal papers collections, and oral history interviews with designers and executives, many of whom have never told their stories before.

About the author

SaturnDave

A massive Saturn fan since Christmas '96, Dave is enthusiastic about growing the community and spreading Saturn love and knowledge to fans old and new. Co-founding the SEGA SATURN, SHIRO! podcast back in 2017 and creating the SHIRO! SHOW in 2020, he seeks to create interesting and engaging Saturn-related content for the community. Dave's interests circle around game preservation, and he is a huge fan of game magazines and developer interviews.
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