Sega announced a North American release date for the system on January 9, 1989. At the time, Sega did not possess a North American sales and marketing organization and was distributing its Master System through Tonka. Dissatisfied with Tonka's performance, Sega looked for a new partner to market the Genesis in North America and offered the rights to Atari Corporation, which did not yet have a 16-bit system. David Rosen made the proposal to Atari CEO Jack Tramiel and the president of Atari's Entertainment Electronics Division, Michael Katz. Tramiel declined to acquire the new console, deeming it too expensive, and instead opted to focus on the Atari ST. Sega decided to launch the console through its own Sega of America subsidiary, which executed a limited launch on August 14, 1989, in New York City and Los Angeles. The Sega Genesis was released in the rest of North America later that year.
Meanwhile, the commercial failure of the Virtual Boy reportedly did little to alter Nintendo's development approach and focus on innovation. According to Game Over, Nintendo laid blame for the machine's faults directly on its creator, Gunpei Yokoi. The commercial failure of the Virtual Boy was said by members of the video game press to be a contributing factor to Yokoi's withdrawal from Nintendo, although he had planned to retire years prior and finished another more successful project for the company, the Game Boy Pocket, which was released shortly before his departure.
Unlike similar consumer electronics such as music players and movie players, which use industry-wide standard formats, video game consoles use proprietary formats which compete with each other for market share. There are various types of video game consoles, including home video game consoles, handheld game consoles, microconsoles and dedicated consoles. Although Ralph Baer had built working game consoles by 1966, it was nearly a decade before the Pong game made them commonplace in regular people's living rooms. Through evolution over the 1990s and 2000s, game consoles have expanded to offer additional functions such as CD players, DVD players, Blu-ray disc players, web browsers, set-top boxes and more.