potential and quickly produced 750,000 units, far above actual demand. This was very profitable for Hudson Soft as NEC paid Hudson Soft royalties for every console produced, whether sold or not. By 1990, it was clear that the system was performing very poorly and NEC could not compete with Nintendo and Sega's marketing.

In late 1989, NEC announced plans for a coin-op arcade video game version of the TurboGrafx-16. However, NEC cancelled the plans in early 1990.

In Europe, the console

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