Relations between Sega and its various regional offices, particularly Sega of America, have been rather tumultuous throughout the company's history. This is perhaps most notable during the development of Sonic X-treme, where the conflict between the two played a major role in the game's eventual cancellation. Supposedly, some of this conflict originates from the 1990s due to former president Hayao Nakayama's admiration of Sega of America. According to former Sega of America CEO Tom Kalinske:


However, video game journalist Steven L. Kent has made claims to the contrary. According to him, Nakayama essentially bullied the American executives under the belief that the Japanese executives were the ones who made the best decisions. When asked if communication between the two was really that bad, he said: