Sega started as an arcade machine company in 1940, serving American servicemen in Hawaii. In 1983, Sega developed their first video game console, the SG-1000. In 1988, Sega produced the Sega Mega Drive, which was later renamed the Sega Genesis in North America. After the failure of the Sega Dreamcast, Sega quit the console business and began working as a software development company for third-party platforms.