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Issue 27 - May 13, 1999
 
Retro
It happened... May 13, 1994
Dale Bradford

You don't often see a manufacturer go to war against the people who purvey their products to the public, but that's what Sega did five years ago this week. As video rental began to go into decline, largely through the increasing success of Sky's film channels, video dealers were frantically searching for a 'complimentary' product to offer. They chose games and, not unnaturally, majored on the most popular format of the day, the Sega Mega Drive.

'Hmm,' thought Sega, 'we could make some money here'. So Sega introduced a licensing scheme, which allowed stores to rent out their products. All fine and dandy. Except Sega charged £5 extra per cartridge if it was for rental use. Not to mention an annual licensing fee of £400. Which wasn't so fine and dandy to the cash-strapped dealers who were merely making a couple of quid a throw. So many turned to exchange schemes. This was where the customer brought a tatty, old game in, paid a small fee, usually £3 - £5, and took away a different tatty, old game.

Everyone's happy. The customer doesn't have to worry about returning the title by a certain time, the dealer doesn't have to chase up those who are 'late' and he keeps the same number of titles in stock at all times. Well, almost everyone was happy. There was a small flaw - as Rolf would say, can you see what it is yet? Yes, Sega were missing out on the extra £5 bunce and their licensing fees. So, without warning, they began firing off cease and desist notices or writs at any dealers who weren't licensed with them but were exchanging. Which was a lot.

The Hacker