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Arcadia Systems

Mastertronic
Industry Computer game software
Founded 1983
Founders Martin Alper, Frank Herman, Terry Medway, Alan Sharam
Website www.mastertronic.com

Mastertronic was originally a publisher and distributor of low-cost computer game software founded in 1983. Their first games were distributed in mid-1984. At its peak the label was the dominant software publisher in the UK, a position achieved by selling cassette-based software at the GB£1.99 and £2.99 price-points. As well as being an exclusive wholesaler of computer games to Woolworth's, Toys "R" Us and other leading retailers, Mastertronic sold software in outlets such as newsagents which had not been previously associated with the software market.

Later diversification included the setting up of US operations to source and distribute their software, as well as an unsuccessful arcade games division (Arcadia Systems). However, it was their decision to market the Sega Master System in the UK that ultimately proved most successful. It resulted in the Master System outselling its rival, the NES throughout the 8-bit era and was cited by some as Virgin Group's reason for investing in the company (and later buying it outright).

As the budget software market declined, the Sega hardware distribution became the dominant part of the business, and the company was eventually merged into Sega itself. Although the original company no longer exists, the rights to the name were acquired by another company, Mastertronic Group, formed as a result of a merger of The Producers and Sold Out Sales & Marketing in 2006.

In 1983 Martin Alper, Frank Herman, Terry Medway and Alan Sharam founded the computer game publishing company Mastertronic. The four had some financial backing from a small group of outside investors and previous experience in video distribution. Their initial venture involved bundling packages of 100 tapes ("dealer packs") and sending them to news agents, toy shops, motorway service stations, or just about anyone who would take them. At that time (1984) mainstream retailers generally refused to take the risk on budget games because of poor quality and sales. Mastertronic eventually won them over with a regular supply of good quality and high selling games. Another key figure at the time was ex-Notts Cricket batsman Richard Bielby who ran a distribution network servicing a large number of small retailers.


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