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UFO Catcher was introduced in 1985 and is Japan's most commonly installed claw crane game.With the introduction of the Sega Genesis in North America in 1989, Sega of America launched an anti-Nintendo campaign to carry the momentum to the new generation of games, with its slogan "Genesis does what Nintendon't." This was initially implemented by Sega of America President Michael Katz.It was soon exported to both Europe and the United States, becoming the first arcade game in the US to cost 25 cents per play.In 1969, Rosen sold Sega to American conglomerate Gulf and Western Industries, although he remained as CEO following the sale.Sega prospered heavily from the arcade gaming boom of the late 1970s, with revenues climbing to over the industry's first stereoscopic 3D game, Sub Roc 3D, and the first laserdisc video game, Astron Belt. Carnival, Space Fury, Turbo, and Zaxxon were licensed to Coleco as launch titles for the Coleco Vision console in 1982.

Nakayama became the new CEO of Sega, Robert Deith chairman of the board, and Rosen became head of its subsidiary in the United States.

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.

This shift led to a wider success for the Genesis and would eventually propel Sega to 65% of the market in North America for a brief time.

Simultaneously, after much delay, Sega released the Sega CD in Japan in 1991 and in North America in 1992 as a hardware add-on to the Genesis, greatly reducing space limitations on their games.

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