

In terms of arcades, Sega is the world's most prolific arcade game producer, having developed more than 500 games, 70 franchises, and 20 arcade system boards since 1981. Nagai has stated that Hang-On and Out Run helped to pull the arcade game market out of the 1983 downturn and created new genres of video games. The company prospered from the arcade game boom of the late 1970s, with revenues climbing to over US$100 million by 1979. Sega released Pong-Tron, its first video-based game, in 1973. According to former Sega director Akira Nagai, this is what led to the company into developing their own games. This necessitated the construction of replacement guns, flippers, and other parts for the machines. Sega imported second-hand machines that required frequent maintenance. The company's involvement in the arcade game industry began as a Japan-based distributor of coin-operated machines, including pinball games and jukeboxes. Sega is a video game developer, publisher, and hardware development company headquartered in Tokyo, Japan, with multiple offices around the world.

A Sega Titan-Video (ST-V) arcade system board, based on Sega Saturn hardware and featuring interchangeable games.
