SEGA was the second company (after Nintendo) to be in negotiation with Sony to make a new console, but the idea was eventually rejected by SEGA. It was confirmed by Tom Kalinske (an employee of SEGA) that the console specs SEGA had proposed were used for the PlayStation. It was also the technical achievements of SEGA's "Virtua Fighter" that made Sony focus on 3D rather than 2D. SEGA essentially sealed their own fate in the console market by rejecting the plans and inspiring Sony to focus on 3D.

The word "SEGA" was created by taking the first two letters from each word in "Service Games", SEGA's original name.

In 2001, SEGA was granted a patent to displaying floating arrows in their games, seen in games such as Crazy Taxi.