Sega CD CD-based add-on, Nintendo eventually canceled the development process of its own competing peripheral after having partnered with Sony and then with Philips to develop one. Sega would go on to release the add-on's second model, the Sega CD 2 (Mega-CD 2), on April 23, 1993 in Japan at a price of JP¥29,800, It was released in North America several months later at the reduced retail price of US$229, with one of the system's best-selling games, "Sewer Shark", as a pack-in. Designed to bring down the manufacturing costs of the Sega CD, the newer model is smaller and does not contain
Philips CD-i partnered in 1992 with Amsterdam-based CDMATICS to develop TeleCD-i (also TeleCD). In this concept, the CD-i player is connected to a network such as PSTN or Internet, enabling data-communication and rich media presentation. Dutch grocery chain Albert Heijn and mail-order company were early adopters and introduced award-winning TeleCD-i applications for their home-shopping and home-delivery services. CDMATICS also developed the special Philips TeleCD-i Assistant and a set of software tools to help the worldwide multimedia industry to develop and implement TeleCD-i. TeleCD-i is the world's first networked multimedia application at the time of its introduction. In 1996, Philips acquired source code