Two years later, Nintendo released the Super Nintendo Entertainment System, and the competition between the two would dominate the 16-bit era of video gaming. The Sega Genesis was launched to compete with the Nintendo Entertainment System and NEC's PC-Engine/TurboGrafx-16. The Sega Genesis was the first of its generation to achieve notable market share in Europe and North America. The Sega Genesis is Sega's third console and the successor to the Sega Master System with which it has backwards compatibility (with the Sega Power Base Converter).

The reason for the two names is that Sega was unable to secure legal rights to the Mega Drive name in North America. It was originally released in Japan in 1988 as Mega Drive (メガドライブ Mega Doraibu), then in North America in 1989 as Sega Genesis, and in Europe, Australia and other PAL regions in 1990 as Mega Drive. The Sega Genesis is a fourth-generation video game console developed and produced by Sega. 7.67MHz Motorola 68000 16-bit processor, 3.58MHz Zilog Z80 8-bit processor

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