Periscope (arcade game) in the context of "Video games in Japan"

Video games are a major industry in Japan, and the country is considered one of the most influential in video gaming. Japanese game development is often identified with the golden age of video games and the country is home to many notable video game companies such as Nintendo, Sega, Bandai Namco Entertainment, Taito, Konami, Square Enix, Capcom, NEC, SNK, Koei Tecmo, Atlus, Arc System Works, Sony and formerly its branch Sony Computer Entertainment. In 2022, Japan was the third largest video game market in the world after the United States and China.

The space is known for the catalogs of several major publishers, all of whom have competed in the video game console and video arcade markets at various points. Released in 1965, Periscope was a major arcade hit in Japan, preceding several decades of success in the arcade industry there. Nintendo, a former hanafuda playing card vendor, rose to prominence during the 1980s with the release of the home video game console called the Family Computer (Famicom), which became a major hit as the Nintendo Entertainment System (NES) internationally. Sony, already one of the world's largest electronics manufacturers, entered the market in 1994 with the Sony PlayStation, one of the first home consoles to feature 3D graphics, almost immediately establishing itself as a major publisher in the space. Shigeru Miyamoto remains internationally renowned as a "father of video gaming" and is the only game developer so far to receive Japan's highest civilian honor for artists, the 文化功労者 (bunka kōrōsha) or Person of Cultural Merit.

Sega Corporation is a Japanese video game company and subsidiary of Sega Sammy Holdings headquartered in Tokyo. It produces several multi-million-selling game franchises for arcades and consoles, including Sonic the Hedgehog, Angry Birds, Phantasy Star, Puyo Puyo, Super Monkey Ball, Total War, Virtua Fighter, Megami Tensei, Sakura Wars, Persona, The House of the Dead, and Yakuza. From 1983 until 2001, Sega also developed its own consoles.

Sega was founded by Martin Bromley and Richard Stewart in Hawaii as Nihon Goraku Bussan on June 3, 1960. Shortly after, it acquired the assets of its predecessor, Service Games of Japan. In 1965, it became known as Sega Enterprises, Ltd., after acquiring Rosen Enterprises, an importer of coin-operated games. Sega developed its first coin-operated game, Periscope, in 1966. Sega was sold to Gulf and Western Industries in 1969. Following a downturn in the arcade business in the early 1980s, Sega began to develop video game consoles, starting with the SG-1000 and Master System, but struggled against competitors such as the Nintendo Entertainment System. In 1984, Sega executives David Rosen and Hayao Nakayama led a management buyout, with backing from CSK Corporation.