It was mismanaged in that Tonka would pass up better SMS games for rubbish. NEC would bring over JJ & Jeff and leave Street Fighter II' in japan. For a period, Street Fighter II' (note the dash) was actually PC Engine exclusive.
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NEC (or TTI) didn't have the rights to publish Street Fighter II' in North America.
What kind of examples do we have of Tonka picking up bad games and turning down better ones?
Just take one look at the PAL Master System library.
It was supported fantastically by 3rd parties here by companies like Domark, Tengen, US Gold, Virgin, Acclaim and Sony.
We got games like Mortal Kombat, Indiana Jones, Populous, Shadow Of The Best, Klax, Paperboy, Ninja Gaiden, Alien 3, Cool Spot etc.
I know, but most of that third party support began after the Tonka contract with Sega in America ended. That is the problem I would like to look further into. I think higher sales in the UK produced more games by UK developers after 1989 in the same way that most of the NES library was produced from 1990 on in the US.
As a Sega fan I would have loved to see the Turbo Grafx get the exclusive rights to MK3.
I was once offered exclusive rights to Sonic but some guy at my Japanese headquarters turned it down saying that I'd need a video game console first.
The only good 16-bit MK port I can think of is SNES MK2. All the rest pretty much suck. I doubt TG16 would do better.
Also SFIICE port is magic given the hardware.
I was once offered the source code to Saturn Shenmue, but then the wind took it away...
I invented multidirectional parallax scrolling on the PC Engine. But I'm to dumb/lazy to actually program it.
I was offered Sir Topham Hatt's head on a platter, but I declined.
The problem with the MK ports were mostly with the actual porting, not the system hardware. The SNES is more than capable of having an arcade perfect MK1. It looked really good, but they screwed up the controls. The Genesis should have been able to have a better version as well, but with a lower color count like the MK2 port.
Also, don't underestimate the power of the PC Engine, it certainly has its limitations but it is pretty powerful at the time.