Sega Takes Aim at Disney's World  Published: July 04, 1993 (Page
4 of 5)  By being in both home and arcade games (Nintendo is
only in home games) Sega can develop technology for expensive
arcade machines and then move it to home machines when the
prices of chips drop. At Sega's research and development
operations in Tokyo, young men (and a few women) in jeans and
T-shirts labor in an open room with plush toys and half-finished
arcade games strewn about. There are beds and showers for those
who choose to stay overnight.  But much of the software and some
advanced technology development is now being shifted to the
United States, just as other Japanese companies have seen fit to
buy Hollywood studios. The United States is unsurpassed in
software for both computers and entertainment and is far ahead
of Japan in areas like cable television. Even the newest
versions of Sonic the Hedgehog, once held up as a prime example
of successful Japanese software, are being developed at Sega of
America in Redwood City, Calif.