<s>
The	O
Sega	B-Application
Channel	I-Application
is	O
a	O
discontinued	O
online	B-Application
game	I-Application
service	O
developed	O
by	O
Sega	O
for	O
the	O
Sega	B-Operating_System
Genesis	I-Operating_System
video	B-Application
game	I-Application
console	I-Application
,	O
serving	O
as	O
a	O
content	O
delivery	O
system	O
.	O
</s>
<s>
Launched	O
on	O
December	O
14	O
,	O
1994	O
,	O
the	O
Sega	B-Application
Channel	I-Application
was	O
provided	O
to	O
the	O
public	O
by	O
TCI	O
and	O
Time	O
Warner	O
Cable	O
through	O
cable	O
television	O
services	O
by	O
way	O
of	O
coaxial	O
cable	O
.	O
</s>
<s>
It	O
was	O
a	O
pay	O
to	O
play	O
service	O
,	O
through	O
which	O
customers	O
could	O
access	O
Genesis	O
games	B-Application
online	I-Application
,	O
play	O
game	O
demos	O
,	O
and	O
get	O
cheat	O
codes	O
.	O
</s>
<s>
Lasting	O
until	O
July	O
31	O
,	O
1998	O
,	O
the	O
Sega	B-Application
Channel	I-Application
operated	O
three	O
years	O
after	O
the	O
release	O
of	O
Sega	O
's	O
next	B-Application
generation	I-Application
console	O
,	O
the	O
Sega	B-Device
Saturn	I-Device
.	O
</s>
<s>
Though	O
criticized	O
for	O
its	O
poorly	O
timed	O
launch	O
and	O
high	O
subscription	O
fee	O
,	O
the	O
Sega	B-Application
Channel	I-Application
has	O
been	O
praised	O
for	O
its	O
innovations	O
in	O
downloadable	O
content	O
and	O
impact	O
on	O
online	B-Application
game	I-Application
services	O
.	O
</s>
<s>
Released	O
in	O
Japan	O
as	O
the	O
Mega	B-Operating_System
Drive	I-Operating_System
in	O
1988	O
,	O
North	O
America	O
in	O
1989	O
,	O
and	O
Europe	O
and	O
other	O
regions	O
as	O
the	O
Mega	B-Operating_System
Drive	I-Operating_System
in	O
1990	O
,	O
the	O
Sega	B-Operating_System
Genesis	I-Operating_System
was	O
Sega	O
's	O
entry	O
into	O
the	O
16-bit	B-Application
era	I-Application
of	O
video	B-Application
game	I-Application
consoles	I-Application
.	O
</s>
<s>
In	O
1990	O
,	O
Sega	O
started	O
its	O
first	O
internet-based	O
service	O
for	O
Genesis	O
,	O
Sega	B-Application
Meganet	I-Application
,	O
in	O
Japan	O
.	O
</s>
<s>
Operating	O
through	O
a	O
cartridge	O
and	O
a	O
peripheral	O
called	O
the	O
Mega	B-Application
Modem	I-Application
,	O
it	O
allowed	O
Mega	B-Operating_System
Drive	I-Operating_System
owners	O
to	O
play	O
17	O
games	B-Application
online	I-Application
.	O
</s>
<s>
Another	O
phone-based	O
system	O
,	O
the	O
Mega	B-Application
Anser	I-Application
,	O
turned	O
the	O
Japanese	O
Mega	B-Operating_System
Drive	I-Operating_System
into	O
an	O
online	O
banking	O
terminal	O
.	O
</s>
<s>
Due	O
to	O
Meganet	B-Application
's	O
low	O
number	O
of	O
games	O
,	O
high	O
price	O
,	O
and	O
the	O
Mega	B-Operating_System
Drive	I-Operating_System
's	O
lack	O
of	O
success	O
in	O
Japan	O
,	O
the	O
system	O
was	O
a	O
commercial	O
failure	O
.	O
</s>
<s>
By	O
1992	O
,	O
the	O
Mega	B-Application
Modem	I-Application
peripheral	O
could	O
be	O
found	O
in	O
bargain	O
bins	O
at	O
a	O
reduced	O
price	O
,	O
and	O
a	O
remodeled	O
version	O
of	O
the	O
Mega	B-Operating_System
Drive	I-Operating_System
released	O
in	O
1993	O
removed	O
the	O
EXT	O
9-pin	O
port	O
,	O
preventing	O
connections	O
to	O
the	O
Meganet	B-Application
service	O
.	O
</s>
<s>
In	O
April	O
1993	O
,	O
Sega	O
announced	O
the	O
Sega	B-Application
Channel	I-Application
service	O
,	O
which	O
would	O
use	O
cable	O
television	O
services	O
to	O
deliver	O
content	O
.	O
</s>
<s>
By	O
June	O
1994	O
,	O
21	O
cable	O
companies	O
had	O
signed	O
up	O
to	O
carry	O
the	O
Sega	B-Application
Channel	I-Application
service	O
.	O
</s>
<s>
The	O
Sega	B-Application
Channel	I-Application
expanded	O
into	O
Canada	O
in	O
late	O
1995	O
,	O
with	O
an	O
approximately	O
Can$19	O
monthly	O
fee	O
.	O
</s>
<s>
During	O
the	O
planning	O
stages	O
of	O
the	O
service	O
,	O
Sega	O
looked	O
to	O
capitalize	O
on	O
the	O
rental	O
market	O
,	O
which	O
had	O
seen	O
some	O
success	O
with	O
the	O
Sega	B-Device
CD	I-Device
being	O
rented	O
through	O
Blockbuster	O
,	O
Inc.	O
,	O
and	O
was	O
looking	O
to	O
base	O
the	O
service	O
's	O
games	O
and	O
demos	O
to	O
sell	O
more	O
cartridges	O
.	O
</s>
<s>
In	O
early	O
1995	O
,	O
Sega	O
CEO	O
Hayao	O
Nakayama	O
ended	O
development	O
on	O
the	O
Sega	B-Operating_System
Genesis	I-Operating_System
and	O
its	O
add-ons	O
,	O
the	O
Sega	B-Device
CD	I-Device
and	O
Sega	B-Device
32X	I-Device
.	O
</s>
<s>
This	O
decision	O
was	O
made	O
to	O
support	O
the	O
Sega	B-Device
Saturn	I-Device
,	O
which	O
had	O
been	O
released	O
in	O
Japan	O
already	O
.	O
</s>
<s>
This	O
placed	O
the	O
release	O
of	O
the	O
Sega	B-Application
Channel	I-Application
during	O
the	O
Genesis	O
 '	O
decline	O
from	O
the	O
market	O
.	O
</s>
<s>
At	O
its	O
peak	O
,	O
the	O
Sega	B-Application
Channel	I-Application
had	O
over	O
250,000	O
subscribers	O
,	O
but	O
by	O
1997	O
,	O
the	O
number	O
had	O
dropped	O
to	O
230	O
,	O
000	O
,	O
two	O
years	O
after	O
Nakayama	O
shifted	O
focus	O
from	O
the	O
Genesis	O
to	O
the	O
Saturn	B-Device
.	O
</s>
<s>
Though	O
Sega	O
looked	O
at	O
options	O
to	O
bring	O
the	O
service	O
to	O
PCs	O
,	O
the	O
rise	O
of	O
cable	B-Device
modems	I-Device
and	O
Internet	B-Application
gaming	I-Application
drove	O
away	O
the	O
demand	O
for	O
such	O
a	O
service	O
.	O
</s>
<s>
In	O
late	O
November	O
of	O
1997	O
it	O
was	O
announced	O
that	O
the	O
Sega	B-Application
Channel	I-Application
would	O
be	O
shut	O
down	O
on	O
June	O
30	O
,	O
1998	O
,	O
but	O
it	O
ended	O
up	O
staying	O
on	O
for	O
another	O
month	O
,	O
finally	O
being	O
discontinued	O
on	O
July	O
31	O
,	O
1998	O
.	O
</s>
<s>
Starting	O
up	O
a	O
Genesis	O
console	O
with	O
an	O
active	O
Sega	B-Application
Channel	I-Application
adapter	O
installed	O
would	O
prompt	O
for	O
the	O
service	O
's	O
main	O
menu	O
to	O
be	O
loaded	O
,	O
which	O
was	O
a	O
process	O
that	O
took	O
approximately	O
30	O
seconds	O
.	O
</s>
<s>
This	O
data	O
would	O
be	O
downloaded	O
into	O
the	O
adaptor	O
's	O
on-board	O
4	O
MB	O
RAM	B-Architecture
,	O
and	O
would	O
be	O
deleted	O
or	O
removed	O
when	O
the	O
system	O
was	O
powered	O
off	O
.	O
</s>
<s>
Programming	O
and	O
transmission	O
of	O
the	O
Sega	B-Application
Channel	I-Application
's	O
monthly	O
services	O
started	O
with	O
a	O
production	O
team	O
at	O
Sega	O
,	O
which	O
would	O
put	O
together	O
content	O
every	O
month	O
and	O
load	O
it	O
onto	O
a	O
CD-ROM	B-Device
.	O
</s>
<s>
It	O
was	O
then	O
sent	O
to	O
TCI	O
's	O
satellite	B-Application
station	O
,	O
located	O
in	O
Denver	O
,	O
Colorado	O
.	O
</s>
<s>
From	O
the	O
station	O
,	O
the	O
signal	O
was	O
transmitted	O
via	O
Hughes	O
Communications	O
Galaxy	O
7	O
satellite	B-Application
,	O
which	O
uploaded	O
at	O
and	O
downloaded	O
at	O
,	O
to	O
the	O
local	O
cable	O
providers	O
.	O
</s>
<s>
In	O
Canada	O
and	O
across	O
South	O
America	O
and	O
Europe	O
,	O
however	O
,	O
the	O
satellite	B-Application
transmission	O
stage	O
was	O
bypassed	O
altogether	O
in	O
favor	O
of	O
direct	O
uploads	O
of	O
the	O
Sega	B-Application
Channel	I-Application
CD-ROM	B-Device
via	O
a	O
cable	O
television	O
headend	O
.	O
</s>
<s>
thumb|Alien	O
Soldier	O
,	O
a	O
game	O
which	O
,	O
while	O
not	O
available	O
in	O
North	O
America	O
in	O
cartridge	O
format	O
,	O
was	O
available	O
on	O
the	O
Sega	B-Application
Channel	I-Application
in	O
that	O
region	O
.	O
</s>
<s>
The	O
Sega	B-Application
Channel	I-Application
service	O
hosted	O
up	O
to	O
50	O
Genesis	O
games	O
at	O
any	O
one	O
time	O
.	O
</s>
<s>
Games	O
for	O
the	O
service	O
included	O
titles	O
developed	O
by	O
Sega	O
,	O
such	O
as	O
Sonic	B-Application
&	I-Application
Knuckles	I-Application
,	O
Eternal	B-Application
Champions	I-Application
,	O
and	O
Space	B-Application
Harrier	I-Application
II	I-Application
;	O
as	O
well	O
as	O
titles	O
developed	O
by	O
licensees	O
of	O
Sega	O
,	O
such	O
as	O
Bubsy	B-Application
2	I-Application
and	O
Aladdin	B-Application
.	O
</s>
<s>
Some	O
of	O
these	O
games	O
had	O
reduced	O
content	O
compared	O
to	O
their	O
cartridge	O
release	O
so	O
that	O
they	O
could	O
fit	O
the	O
adapter	O
's	O
memory	O
,	O
such	O
as	O
Super	B-Application
Street	I-Application
Fighter	I-Application
II	I-Application
.	O
</s>
<s>
The	O
Sega	B-Application
Channel	I-Application
also	O
hosted	O
games	O
in	O
some	O
regions	O
that	O
would	O
not	O
receive	O
a	O
cartridge	O
release	O
,	O
such	O
as	O
Pulseman	B-Application
,	O
Mega	B-Application
Man	I-Application
:	I-Application
The	I-Application
Wily	I-Application
Wars	I-Application
,	O
and	O
Alien	B-Application
Soldier	I-Application
,	O
which	O
were	O
hosted	O
on	O
the	O
service	O
in	O
North	O
America	O
.	O
</s>
<s>
The	O
service	O
also	O
offered	O
demos	O
of	O
upcoming	O
games	O
,	O
such	O
as	O
Primal	B-Application
Rage	I-Application
.	O
</s>
<s>
In	O
addition	O
to	O
games	O
and	O
demos	O
,	O
the	O
Sega	B-Application
Channel	I-Application
also	O
hosted	O
other	O
features	O
.	O
</s>
<s>
The	O
service	O
also	O
hosted	O
contests	O
,	O
such	O
as	O
a	O
promotion	O
with	O
Electronic	O
Arts	O
 '	O
Triple	O
Play	O
'	O
96	O
,	O
and	O
a	O
1995	O
event	O
where	O
players	O
who	O
completed	O
Primal	B-Application
Rage	I-Application
during	O
a	O
brief	O
24-hour	O
period	O
where	O
the	O
full	O
game	O
was	O
accessible	O
were	O
given	O
a	O
phone	O
number	O
to	O
call	O
,	O
making	O
them	O
eligible	O
to	O
win	O
prizes	O
.	O
</s>
<s>
During	O
its	O
lifetime	O
,	O
the	O
Sega	B-Application
Channel	I-Application
won	O
one	O
of	O
Popular	O
Science'''s	O
"	O
Best	O
of	O
What	O
's	O
New	O
"	O
award	O
for	O
the	O
year	O
1994	O
.	O
</s>
<s>
Likewise	O
,	O
in	O
August	O
1995	O
,	O
a	O
survey	O
conducted	O
by	O
Sports	O
Illustrated''	O
found	O
that	O
children	O
between	O
9	O
and	O
13	O
years	O
old	O
were	O
five	O
times	O
more	O
likely	O
to	O
subscribe	O
to	O
the	O
Sega	B-Application
Channel	I-Application
than	O
to	O
purchase	O
a	O
Sega	B-Device
Saturn	I-Device
or	O
the	O
upcoming	O
Nintendo	B-Operating_System
64	I-Operating_System
or	O
PlayStation	B-Device
.	O
</s>
<s>
Retrospective	O
reception	O
of	O
the	O
Sega	B-Application
Channel	I-Application
praises	O
its	O
innovation	O
and	O
role	O
in	O
the	O
development	O
of	O
online	O
gaming	O
,	O
but	O
criticizes	O
its	O
high	O
subscription	O
fees	O
and	O
timing	O
into	O
the	O
market	O
.	O
</s>
<s>
IGN	O
writer	O
Adam	O
Redsell	O
noted	O
how	O
the	O
Sega	B-Application
Channel	I-Application
caused	O
many	O
cable	O
companies	O
to	O
clean	O
their	O
broadcast	O
signals	O
and	O
its	O
role	O
in	O
the	O
development	O
of	O
high-speed	O
internet	O
,	O
stating	O
"	O
the	O
...	O
very	O
fact	O
that	O
you	O
’re	O
enjoying	O
broadband	B-General_Concept
internet	O
right	O
now	O
could	O
well	O
be	O
thanks	O
to	O
SEGA.	O
"	O
</s>
<s>
Levi	O
Buchanan	O
,	O
also	O
writing	O
for	O
IGN	O
,	O
credited	O
the	O
Sega	B-Application
Channel	I-Application
with	O
its	O
role	O
in	O
the	O
development	O
of	O
modern	O
gaming	O
and	O
content	O
delivery	O
services	O
,	O
such	O
as	O
Xbox	B-Device
Live	I-Device
Arcade	I-Device
and	O
PlayStation	B-Device
Network	I-Device
,	O
stating	O
"	O
SEGA	O
and	O
the	O
entire	O
industry	O
learned	O
important	O
lessons	O
from	O
the	O
SEGA	B-Application
Channel	I-Application
.	O
</s>
<s>
SEGA	O
was	O
still	O
committed	O
to	O
the	O
idea	O
of	O
downloads	O
and	O
online	O
,	O
as	O
evidenced	O
by	O
the	O
Dreamcast	O
's	O
SegaNet	O
...	O
You	O
can	O
also	O
see	O
the	O
DNA	O
of	O
early	O
services	O
like	O
the	O
SEGA	B-Application
Channel	I-Application
in	O
modern	O
portals	O
like	O
XBLA	B-Device
and	O
PSN	B-Device
,	O
where	O
demos	O
are	O
now	O
a	O
staple.	O
"	O
</s>
<s>
The	O
staff	O
of	O
UGO	O
Networks	O
also	O
credited	O
the	O
Sega	B-Application
Channel	I-Application
with	O
being	O
an	O
important	O
step	O
in	O
the	O
development	O
of	O
both	O
services	O
.	O
</s>
<s>
Ken	O
Horowitz	O
of	O
Sega-16	O
criticizes	O
Sega	O
's	O
poor	O
timing	O
of	O
the	O
launch	O
of	O
the	O
Sega	B-Application
Channel	I-Application
and	O
the	O
subscription	O
's	O
high	O
price	O
.	O
</s>
<s>
This	O
horrendous	O
blunder	O
(	O
one	O
of	O
many	O
by	O
Sega	O
Enterprises	O
)	O
caused	O
retailers	O
to	O
dump	O
their	O
inventory	O
of	O
systems	O
,	O
thereby	O
sealing	O
the	O
fate	O
of	O
the	O
Sega	B-Application
Channel	I-Application
once	O
and	O
for	O
all.	O
"	O
</s>
<s>
Buchanan	O
echoes	O
the	O
same	O
sentiments	O
,	O
stating	O
,	O
"	O
Perhaps	O
if	O
the	O
SEGA	B-Application
Channel	I-Application
had	O
been	O
released	O
earlier	O
in	O
the	O
console	O
's	O
lifecycle	O
—	O
the	O
Genesis	O
launched	O
in	O
1989	O
in	O
America	O
—	O
things	O
might	O
have	O
turned	O
out	O
differently	O
.	O
</s>
<s>
UGO	O
also	O
notes	O
the	O
potential	O
the	O
Sega	B-Application
Channel	I-Application
could	O
have	O
had	O
with	O
some	O
more	O
development	O
time	O
in	O
the	O
field	O
of	O
competitive	O
multiplayer	O
,	O
stating	O
,	O
"	O
If	O
the	O
Sega	B-Application
Channel	I-Application
had	O
come	O
a	O
little	O
earlier	O
in	O
the	O
life	O
of	O
the	O
Genesis	O
it	O
would	O
have	O
seen	O
much	O
more	O
exposure	O
,	O
and	O
maybe	O
online	B-Application
play	I-Application
would	O
have	O
been	O
feasible	O
for	O
games	O
that	O
could	O
have	O
been	O
developed	O
directly	O
for	O
the	O
service.	O
"	O
</s>
