In June, Sega of America introduced a new sub-brand called Sega Club.
Dedicated to kids under age 12, Sega Club products will combine
interactive edutainment with video games. Mixing age-appropriate content,
characters, and game play, Sega Club hopes to appeal evenly to the nearly
30 million girls and boys in this age bracket. The Sega Club line will
include hardware and peripheral products, as well as cross-platform
software developed by Sega and third party children's software producers.
Sega will introduce six titles this year and third party licensees will
have 30 new games for the under 12 year-old market.

The sub-brand will be launched at retail in November with the release of
the Genesis Creativity Pak, which includes a Genesis system, the Sega Mega
Mouse, and Creative Antics, a software product that lets kids create their
own interactive worlds.

With this introduction, Sega is targeting the younger-age market as a
definite growth area, according to Diane Fornesiar, Sega group director of
Genesis and Game Gear, with the belief that younger kids want to feel
cool, too, just in a different way. All the Sega Club games will have a GA
rating, and Sega will be making point-of-sale material available that
explains the rating system to parents.

Sega Club is Sega's second sub-brand introduction after Sega Sports, which
was introduced last year. Fornesiar notes that this fits in with the
industry-wide recognition of the need to categorize the different areas of
the video game-market. With a lot of experimentation going on at the
retail level, Sega is hoping retailers will use Sega Club to create a full
section dedicated to younger children.

Sega believes its titles in this sub-brand will keep children's interest
until they are ready to progress to the main line, around age nine to 11.
With the introduction of the 32X this fall, the Genesis becomes upgradable
to a 32-bit system.

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