Gremlin Industries

Gremlin Industries was an American coin-operated entertainment and arcade-game manufacturer founded in San Diego in 1970 by Harry Frank Fogleman and Carl E. Grindle. It began as a contract engineering firm, but moved into the manufacture of coin-operated wall games before becoming a video-arcade producer. Its earliest wall game was Play Ball, released in 1973, followed by products such as Skeet Shoot, Fooswall, Tenpin, and All Star. In 1976, the company entered the video-game market with Blockade, a competitive maze-and-trail game that became one of its best-known original creations and an influential early arcade title. Gremlin expanded its portfolio in the late 1970s with games including CoMotion, Hustle, Depthcharge, Safari, Blasto, Frogs, Head On, Head On 2, Deep Scan, Invinco, and Carnival. The company also experimented outside arcade cabinets. Through its Noval subsidiary, it introduced the Noval 760 in 1977, a home computer integrated into a wooden office desk. The unusual product sold poorly and was discontinued in 1979, leaving arcade manufacturing as the core business. Sega Enterprises, Inc. acquired Gremlin in 1978. After the transaction, the company’s products were marketed under Gremlin/Sega or Sega/Gremlin branding. This arrangement gave Sega a substantial American manufacturing and distribution base while allowing Gremlin to continue developing games and distributing titles from Japanese publishers. The combined operation handled or manufactured games associated with Sega, Namco, Nichibutsu, Nintendo, Konami, and other companies. Its North American role included the distribution of Frogger and Zaxxon, while its own or Sega-associated catalog included Head On, Astro Blaster, Space Fury, Eliminator, Zektor, Tac/Scan, and other arcade releases. The business grew sufficiently for the company to lease a building in Rancho Bernardo’s Technology Park in 1981 and move into it as its principal manufacturing facility in 1982. The facility was associated with the production of prominent games including Zaxxon, Star Trek: Strategic Operations Simulator, and Congo Bongo. However, the arcade market weakened sharply in 1982. Industry-wide overproduction and the end of the arcade boom placed pressure on manufacturers, and Gremlin/Sega’s operations entered a rapid decline. In 1982, Sega changed the corporate name to Sega Electronics in an effort to emphasize the Sega identity in the United States. The manufacturing assets were sold to Bally Manufacturing in August 1983. The transaction transferred important arcade technology and publishing-related rights, including technology connected with laserdisc games such as Astron Belt. It did not transfer every Sega American asset: research and development activities and the home division remained outside the sale, and some former Sega Electronics developers continued to offer projects to Bally without securing releases. Gremlin Industries therefore ceased to operate as an independent arcade manufacturer. Sega retained rights to the Sega/Gremlin catalog, which was later revisited through emulation and compilation products, including Sega Ages and Sega Genesis Collection. The corporate entity associated with Sega Electronics later underwent further name changes, while the Gremlin name and portions of the wall-game catalog had subsequent commercial associations. Historically, Gremlin is best understood as an important early American arcade manufacturer and as a bridge between Sega’s Japanese arcade business and its North American operations.

Gremlin Industries was established in San Diego in 1970 by Harry Frank Fogleman and Carl E. Grindle. The founders intended to use a blended name based on their surnames, but the incorporation name was recorded as Gremlin after a telephone misunderstanding. The business initially provided contract engineering services. In 1973 it began producing coin-operated wall games, starting with Play Ball and later adding Skeet Shoot, Fooswall, Tenpin, and All Star. The company entered the video-arcade industry in 1976 with Blockade. Its late-1970s output included a mixture of original games and licensed or distributed products. Notable Gremlin-developed or associated titles included CoMotion, Hustle, Depthcharge, Safari, Blasto, Frogs, Head On, Head On 2, Deep Scan, Invinco, and Carnival. Gremlin also created the Noval subsidiary, which released the Noval 760 home computer in 1977. The computer was built into a wooden office desk with a pivoting desktop section, but weak sales led to its discontinuation in 1979. Sega Enterprises acquired Gremlin in 1978. The resulting operation used Gremlin/Sega and Sega/Gremlin labels and became an important North American platform for Sega’s arcade products and games from Japanese partners. Its distribution and manufacturing activities covered titles connected with Namco, Nichibutsu, Nintendo, Konami, and Sega. Among the better-known releases or market activities were Head On, Moon Cresta, Space Firebird, Frogger, Astro Blaster, Space Fury, Zaxxon, Pengo, Star Trek: Strategic Operations Simulator, and Congo Bongo. In response to its expanding manufacturing role, the company leased a building in Rancho Bernardo’s Technology Park in 1981 and occupied it in 1982. The facility was associated with the production of major arcade games, including Zaxxon, Star Trek: Strategic Operations Simulator, and Congo Bongo. The timing proved difficult. The arcade market began a rapid contraction in 1982, with overproduction contributing to the end of the period commonly regarded as the golden age of arcade video games. Sega changed the company’s name to Sega Electronics in 1982, seeking to make the Sega identity more prominent in the American market. The operation nevertheless declined, and Bally Manufacturing purchased its arcade manufacturing assets in August 1983. Bally obtained Sega’s laserdisc arcade technology, principally associated with Astron Belt, as well as rights connected with later games including Galaxy Ranger and Albegas. It also received a two-year right of first refusal concerning publication of certain Japanese Sega arcade games in the United States. The sale did not include all of Sega Enterprises’ American assets. Sega’s research and development activities and home division continued separately. In 1984, Sega Enterprises was acquired in a management buyout involving David Rosen and Hayao Nakayama, backed by CSK Corporation. The buyout included rights to the Sega/Gremlin game catalog, which Sega later reused in compilation and emulation products. Gremlin-branded wall-game properties were subsequently marketed by another Las Vegas-based firm with participation from former Gremlin personnel. Sega Electronics later became a shell entity holding some Gremlin trademarks, was renamed Ages Electronics in 1985, and eventually became associated with production activities unrelated to the original arcade business.

• 1984

  Sega management buyout preserves catalog rights

  [1]Gremlin Industriesen.wikipedia.org

  A management buyout of Sega Enterprises includes rights to the Sega/Gremlin back catalog.

• 1983

  Arcade manufacturing assets sold to Bally

  [1]Gremlin Industriesen.wikipedia.org

  Bally Manufacturing acquires the company’s arcade manufacturing assets as the arcade market contracts.

• 1982

  Company renamed Sega Electronics

  [1]Gremlin Industriesen.wikipedia.org

  Sega changes the operating company’s name to reinforce its corporate brand in the United States.

• 1981

  Rancho Bernardo facility leased

  [1]Gremlin Industriesen.wikipedia.org

  The company leases a building in Rancho Bernardo’s Technology Park for expanded manufacturing.

• 1978

  Acquisition by Sega

  [1]Gremlin Industriesen.wikipedia.org

  Sega Enterprises acquires Gremlin, creating the Sega/Gremlin operating structure.

• 1977

  Noval 760 home computer introduced

  [1]Gremlin Industriesen.wikipedia.org

  Gremlin’s Noval subsidiary releases an office-desk-integrated home computer.

• 1976

  Blockade launches

  [1]Gremlin Industriesen.wikipedia.org

  The company releases Blockade, its first video arcade game.

• 1973

  First coin-operated wall game

  [1]Gremlin Industriesen.wikipedia.org

  Gremlin enters coin-operated entertainment manufacturing with Play Ball.

• 1970

  Gremlin Industries is founded

  [1]Gremlin Industriesen.wikipedia.org

  Harry Frank Fogleman and Carl E. Grindle establish the company in San Diego as a contract engineering firm.

A pioneering American arcade manufacturer that combined internally developed games with manufacturing and distribution for Sega and other Japanese publishers.

• Coin-operated entertainment · 1973

  Coin-operated wall games

  Gremlin began as a manufacturer of coin-operated wall games. Play Ball was its first documented release in this category, followed by products such as Skeet Shoot, Fooswall, Tenpin, and All Star. These games represent the company’s pre-video-arcade business and established its experience in physical amusement equipment.

• Video arcade game · 1976

  Blockade

  Released in 1976, Blockade was Gremlin Industries’ first video arcade game. It belongs to the early competitive trail-making tradition in which players maneuver vehicles or characters while leaving paths that opponents must avoid. The title became one of Gremlin’s signature original arcade properties and helped establish the company within the emerging video-game sector.

• Video arcade game · 1979

  Head On

  Head On and its sequel Head On 2 were among Gremlin’s best-known late-1970s arcade releases. The games formed part of the company’s original Sega-associated arcade catalog and illustrated Gremlin’s focus on fast, repeat-play coin-operated experiences.

• Distributed arcade game · 1981

  Frogger

  Frogger was developed by Konami and published by Sega Enterprises in Japan, with Gremlin/Sega serving as part of the North American distribution operation. It was one of the most prominent externally developed games associated with Gremlin’s role after the Sega acquisition.

• Video arcade game · 1982

  Zaxxon

  Zaxxon was developed by Ikegami Tsushinki and published by Sega Enterprises in Japan. Gremlin/Sega manufactured or distributed the game in the North American operation, and it was among the prominent titles associated with the Rancho Bernardo production facility.

• Video arcade game · 1983

  Star Trek: Strategic Operations Simulator

  This 1983 arcade title was among the major games manufactured at the Sega/Gremlin facility. It extended the operation’s portfolio into licensed science-fiction entertainment and represented the company’s large-scale manufacturing role shortly before the Bally asset sale.

• Home computer · 1977

  Noval 760

  Released by Gremlin’s Noval subsidiary in 1977, the Noval 760 was integrated into a wooden office desk, with the computer section of the desktop able to pivot out of view. The distinctive design did not achieve commercial success, and the product was discontinued in 1979.

• 1983

  Sale of arcade manufacturing assets to BallyM&A

  Background

  Overproduction and the broader downturn in arcade video games placed pressure on Sega Electronics’ manufacturing operation.

  Action taken

  Bally Manufacturing purchased the arcade manufacturing assets, including laserdisc-game technology and certain Sega publishing-related rights.

  Aftermath

  Gremlin’s independent arcade manufacturing activity ended, while other Sega American activities continued separately.

  Source

• 1982

  Renaming as Sega ElectronicsStrategy

  Background

  Sega sought to strengthen recognition of its own name in the United States after operating the business under Gremlin/Sega branding.

  Action taken

  The company changed its name from Gremlin Industries to Sega Electronics.

  Aftermath

  The renamed operation entered decline during the arcade market contraction and ceased arcade manufacturing after its assets were sold in 1983.

  Source

• 1978

  Sega acquisitionM&A

  Background

  Gremlin had developed a position in American arcade manufacturing and had begun releasing video games, while Sega sought a stronger North American operating and manufacturing base.

  Action taken

  Sega Enterprises acquired Gremlin Industries and operated its products under Gremlin/Sega and Sega/Gremlin branding.

  Aftermath

  The combined operation distributed and manufactured games from Sega and several Japanese publishers, including Frogger and Zaxxon.

  Source

1. 1Gremlin Industriesen.wikipedia.org