If you were a gamer in the 8-bit era, you probably remember the console wars, which were mostly dominated by Nintendo. But there was another powerful contender that, in many ways, was ahead of its time: the Sega Master System. In my latest video, I take a deep dive into this fascinating console, and here’s a look at its story.
What Was the Master System?
The Sega Master System, or SMS for short, was an 8-bit, third-generation video game console. It was Sega’s direct competitor to the incredibly popular Nintendo Entertainment System (NES). It actually started in Japan as the Sega Mark III back in 1985 before being redesigned and launched as the Master System in North America in 1986, Europe in 1987, and Brazil in 1989.
A Powerhouse in Disguise
On paper, the Master System was a beast. It had a faster processor than the NES, four times the RAM, and eight times the video RAM. This allowed it to produce more vibrant graphics, capable of showing 32 colors at once from a palette of 64, which was a significant step up from the NES. It also had unique features like the credit-card-sized “Sega Cards” for cheaper games and even a 3D glasses peripheral.
A Story of Different Fates
Despite its superior tech, the Master System famously struggled in North America and Japan. Why? Nintendo’s market dominance was just too strong. Nintendo had restrictive licensing policies that scared third-party developers away from putting their games on competing consoles. This, combined with poor marketing (Sega handed distribution to the toy company Tonka, who didn’t have console experience), meant the console just couldn’t get a foothold.
But in Europe and Brazil, it was a completely different story. In those regions, Nintendo’s dominance wasn’t as absolute. The Master System was a massive success, especially in Brazil, where local distributor TecToy did an amazing job localizing games and marketing the console. Incredibly, licensed Master System consoles are still produced and sold in Brazil today.
Games, Secrets, and Legacy
The game library really depended on where you lived. The US got just over 100 games, while the European PAL region saw over 300. The console was also famous for its built-in games. Early models had a hidden game called Snail Maze, while later, more popular models (like the Master System 2) came with the iconic Alex Kidd in Miracle World built right in.
The Master System was a console of many quirks, like the Japanese-exclusive FM sound chip that gave games much richer audio. Even its name was chosen in a brainstorming session where employees threw darts at a whiteboard!
While it may not have “won” the console war in North America, the Master System was a critical and financial success for Sega internationally. It built a loyal fanbase and, most importantly, laid the groundwork for its legendary successor, the Sega Mega Drive (or Genesis).

