Mastertronic

Mastertronic was a British video-game publisher and distributor established in London in 1983 by Martin Alper, Frank Herman, Terry Medway and Alan Sharam. The company became one of the defining businesses of the United Kingdom's 1980s home-computer software market by selling cassette-based games at a low retail price, initially £1.99. Its approach combined inexpensive software with unusually broad distribution: rather than relying only on specialist computer shops, Mastertronic supplied Woolworth's, Toys "R" Us, newsagents, toy stores, motorway service stations and other outlets that had not traditionally sold computer games. The company used packaged dealer bundles and a network of small retailers to place games in front of a mass audience. The label's early success came from a large catalogue of externally produced games for systems such as the Commodore 64, ZX Spectrum and other popular home computers. Notable releases included Kikstart, Action Biker, Finders Keepers, Chiller and Flash Gordon. Mastertronic generally did not employ in-house programmers; instead, it acquired or commissioned software from freelance authors and independent development teams, then concentrated its own resources on evaluation, technical support, packaging, manufacturing, marketing and distribution. This model kept fixed costs low and allowed the business to publish a high volume of varied titles. Music by composers including Rob Hubbard also helped some of its Commodore 64 releases achieve a reputation beyond their low price point. As the company expanded, it created additional labels and operations. Mastertronic Added Dimension, usually abbreviated M.A.D., offered games at a somewhat higher budget price and became associated with products such as The Last V8, Knight Tyme and 180. Entertainment USA was created to handle relationships with American creators and bring their work to the British market. Bulldog was used principally for exporting British games to the United States, while Rack-it and Americana supported budget reissues for other publishers. Ricochet became a prominent re-release label; its catalogue included Activision's Ghostbusters, which sold close to half a million copies according to accounts of the period. Mastertronic also acquired Melbourne House when that company encountered financial difficulties, adding its catalogue and publishing capabilities. The business diversified beyond home-computer software. In 1987 it launched the short-lived Master Vision and Master Sound labels for low-priced video and music cassettes, although these activities produced few notable releases. The same year it established Arcadia Systems, an arcade-game venture intended to use Amiga-derived hardware and share software technology with home computers. Arcadia failed commercially and placed substantial pressure on Mastertronic's finances. The project was criticized internally for producing games that were not well suited to arcade play, and its failure contributed to serious cash-flow problems. A more consequential development was Mastertronic's distribution relationship with Sega. Frank Herman recognized that Sega needed a United Kingdom distributor for its Master System hardware and software. Mastertronic distributed large quantities of the system in the UK during 1987 and subsequently handled distribution in France and Germany. Sega's growth ultimately became more important to the company than the original budget-software business. Virgin purchased the outside investors' 45 percent stake, and the remaining shareholders later sold their interests in a transaction that produced Virgin Mastertronic. The business continued to use Mastertronic, Melbourne House and Virgin Games labels for a period. By the end of the 1980s, competition in budget software had intensified while consumers were moving from 8-bit computers toward console systems. Sega-related distribution generated most of the group's turnover and profit by about 1991. Sega then acquired the business, with much of the staff transferring into Sega operations and the publishing activities being reorganized under Virgin Interactive Entertainment. The original Mastertronic company consequently ceased to exist as an independent business. The name was later revived by Mastertronic Group, formed in 2006 through the combination of The Producers and Sold Out Sales & Marketing, with original co-founder Frank Herman serving as chairman. That later company represented a separate corporate continuation of the name rather than the survival of the original 1983 entity.

Mastertronic emerged in 1983 during the expansion of Britain's home-computer software market. Its founders—Martin Alper, Frank Herman, Terry Medway and Alan Sharam—had experience in video distribution and recognized that the main barrier to selling inexpensive games was not necessarily software production but logistics, retail access and replenishment. The company assembled dealer packs containing large numbers of cassette games and offered them to a broad range of retailers. Newsagents, toy shops, motorway service stations and general retailers joined specialist computer stores in carrying the products. The company's standard price of £1.99 made games accessible to younger consumers and helped establish a high-volume model. Mastertronic's games were created by outside software houses and freelance programmers rather than an internal development department. This reduced development overhead and let the company publish a broad catalogue, although it also made consistency and long-term series development more difficult. Internal personnel focused on selection, testing, technical assistance, packaging, manufacturing schedules, marketing and distribution. The approach was particularly effective for the Commodore 64 and other 8-bit computers, where Mastertronic could combine cheap software with strong presentation and music. Several releases featured work by Rob Hubbard and became recognized by enthusiasts despite their budget positioning. Mastertronic broadened its label structure as the catalogue matured. Mastertronic Added Dimension, or M.A.D., was introduced in 1985 for games priced above the core range. Entertainment USA followed in 1986 to support relationships with American creators and bring their games into the British market. In 1987, Bulldog was used to distribute British games in the United States. Other labels, including Rack-it and Americana, handled budget reissues for third-party publishers. Ricochet became a significant re-release imprint, with Activision's Ghostbusters among its strongest performers. The acquisition of Melbourne House added an established software label and catalogue. The company also pursued diversification. Master Vision and Master Sound were launched in 1987 for low-cost video and music cassettes, but the experiment was brief. More damaging was Arcadia Systems, an arcade subsidiary intended to adapt Amiga-based technology for dedicated arcade machines. The venture failed because its products were considered poorly matched to arcade expectations. The resulting losses, combined with the acquisition of Melbourne House and other commitments, created a severe cash-flow crisis and nearly brought down the company. Mastertronic's relationship with Sega provided the route out of this crisis and eventually changed the nature of the business. Frank Herman identified an opportunity to distribute Sega's Master System in the United Kingdom at a time when Sega lacked a suitable UK distributor. Mastertronic sold substantial quantities during 1987 and later gained distribution responsibilities in France and Germany. Sega hardware and software rapidly became more commercially important than the original budget-computer catalogue. Virgin purchased the 45 percent shareholding held by outside investors, while the founders later sold their remaining interests under a complex arrangement. The resulting company operated as Virgin Mastertronic and continued publishing under several labels. As the budget-software market became more crowded and consumers moved from 8-bit computers to consoles, Mastertronic's original activity declined. By approximately 1991, Sega-related operations generated nearly all of the group's turnover and profit. Sega acquired the business, and most employees moved into Sega operations. The remaining publishing activities were reorganized as Virgin Interactive Entertainment, ending the original Mastertronic company's independent existence. The Mastertronic name was later acquired for use by a new company formed in 2006 from The Producers and Sold Out Sales & Marketing, with Frank Herman as chairman. That later organization should be distinguished from the original publisher described in the canonical Mastertronic article.

• 2006

  The Mastertronic name is revived

  [1]Mastertronicen.wikipedia.org

  A separate Mastertronic Group is created through a merger involving The Producers and Sold Out Sales & Marketing.

• 1991

  Sega acquires the business

  [1]Mastertronicen.wikipedia.org

  Sega takes over the operation as console distribution becomes its central commercial activity.

• 1988

  Virgin Mastertronic is formed

  [1]Mastertronicen.wikipedia.org

  Virgin's investment and the founders' later sale of their holdings lead to the merger structure known as Virgin Mastertronic.

• 1987

  Arcadia Systems is launched

  [1]Mastertronicen.wikipedia.org

  The company enters arcade gaming with a venture based on Amiga-related technology.

• 1987

  Sega Master System distribution begins

  [1]Mastertronicen.wikipedia.org

  Mastertronic becomes Sega's UK distributor and later takes on distribution in France and Germany.

• 1986

  US operations and Entertainment USA expand the catalogue

  [1]Mastertronicen.wikipedia.org

  Mastertronic establishes a US operation and begins working more closely with American software creators.

• 1985

  Mastertronic Added Dimension is introduced

  [1]Mastertronicen.wikipedia.org

  The M.A.D. label broadens the range with games sold at a higher budget price.

• 1984

  First Mastertronic games are released

  [1]Mastertronicen.wikipedia.org

  The first titles reach the market on April 2, launching the company's £1.99 cassette-game strategy.

• 1983

  Mastertronic is founded in London

  [1]Mastertronicen.wikipedia.org

  Martin Alper, Frank Herman, Terry Medway and Alan Sharam establish the company as a low-cost computer-game publisher and distributor.

Mass-market, low-cost video-game publishing and distribution, built around affordable cassette software and unusually broad retail availability.

• Video-game publishing · 1984

  Budget computer games

  Mastertronic's core product was inexpensive cassette-based software for 8-bit home computers. The company published games from independent developers and freelance authors, then used standardized packaging, large dealer packs and broad retail distribution to reach consumers beyond specialist computer stores. Representative titles included Kikstart, Action Biker, Finders Keepers and Chiller.

• Budget video-game label · 1985

  Mastertronic Added Dimension

  The M.A.D. label was introduced as a higher-priced tier within Mastertronic's budget catalogue. It provided room for somewhat more ambitious or differentiated releases while retaining the company's value-oriented positioning. The Last V8, Knight Tyme and 180 were among the titles associated with the imprint.

• Video-game re-release label · 1987

  Ricochet re-releases

  Ricochet was created to bring older full-price games back to market at budget prices. Its catalogue included Activision's Ghostbusters, reported to have sold nearly half a million copies, and benefited from Mastertronic's ability to place re-releases in mass-market retail channels.

• Console distribution · 1987

  Sega Master System distribution

  Mastertronic distributed Sega's Master System hardware and software in the United Kingdom and later in France and Germany. This became the company's most important commercial activity, eventually overshadowing its original computer-game publishing business and helping lead to the Virgin and Sega transactions.

• Arcade gaming · 1987

  Arcadia Systems

  Arcadia was Mastertronic's arcade-game venture. It intended to use hardware based on the Amiga chipset and share technology between arcade machines and home systems. The business failed because its games were not considered suitable for arcade-style play, and the losses placed serious financial strain on the parent company.

• 1988

  Combine with VirginM&A

  Background

  Arcadia losses, the Melbourne House acquisition and other commitments left Mastertronic under significant financial pressure.

  Action taken

  Virgin purchased the 45 percent stake held by outside investors, followed by a transaction in which the founders sold their remaining holdings.

  Aftermath

  The combined company operated as Virgin Mastertronic and continued using several established publishing labels.

  Source

• 1987

  Enter arcade gaming through Arcadia SystemsProduct launch

  Background

  Mastertronic sought to diversify beyond home-computer software and reduce development costs by sharing technology between arcade machines and home systems.

  Action taken

  It launched Arcadia Systems using hardware derived from Commodore Amiga technology.

  Aftermath

  The venture failed, its games were judged poorly suited to arcades, and the losses contributed to a severe cash-flow crisis.

  Source

• 1987

  Make Sega distribution a central growth businessStrategy

  Background

  Sega needed a UK distributor for the Master System, while Mastertronic had an established retail and logistics network.

  Action taken

  Mastertronic took on UK distribution and later expanded the arrangement to France and Germany.

  Aftermath

  Sega-related sales eventually generated nearly all of the group's turnover and profit, leading to the Virgin Mastertronic structure and eventual Sega takeover.

  Source

• 1983

  Adopt a mass-market budget distribution modelStrategy

  Background

  Computer games were commonly sold through specialist channels, while Mastertronic's founders saw an opportunity to reach consumers through general retailers and small outlets.

  Action taken

  The company priced much of its cassette software at £1.99 and distributed dealer packs through newsagents, toy stores, motorway service stations and major retailers.

  Aftermath

  The model made Mastertronic one of the largest UK software publishers of the 1980s and helped broaden the retail audience for computer games.

  Source

1. 1Mastertronicen.wikipedia.org