In the early 1980s, Sega Enterprises, Inc., was one of the top five arcade game manufacturers in the United States. At this time, Sega was a subsidiary of Gulf & Western. Its company revenues was higher than $200 million between July 1981 and June 1982. In 1982, the arcade business slowed, and it hurt Sega. It led to Gulf & Western selling its North American arcade manufacturing organization. They also licensed rights for its arcade games to Bally Manufacturing. The company kept Sega's North American R&D operation, as well as its Japanese subsidiary, Sega Enterprises, Ltd. With its arcade business hurting, Sega Enterprises, Ltd. president Hayao Nakayama said that the company should to move into the home console market in Japan. The industry was very new at that time.