Mastertronic Software, a British video game company that emerged during the early 1980s, was one of the most successful and influential companies in the gaming industry. Its innovative business model and marketing strategies set the bar for other companies to follow. However, despite its initial success, the company eventually faced several challenges and setbacks, ultimately leading to its downfall in the mid-1990s. In this article, I’ll take a look at the history of Mastertronic Software, its rise to prominence, its challenges and setbacks, and its eventual decline and legacy. I’ll also share some of my favourite Mastertronic games from back in the day.
History of Mastertronic Games and Software
Mastertronic Software was founded in 1983 by Martin Alper, Frank Herman, and Alan Sharam. The company began as a mail-order software retailer, selling budget games on cassette tapes. They soon expanded into publishing games under their own label, and their innovative business model of selling games at low prices quickly attracted a large audience. Mastertronic Software’s marketing strategy was unique in that they used a distinctive yellow-and-black packaging design, which stood out on store shelves and quickly became synonymous with the brand.
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The Rise of Mastertronic Budget Games
Mastertronic Software quickly rose to prominence in the video game industry due to its innovative business model and marketing strategies. The company was responsible for publishing several successful games and franchises, including the budget release of “Ghostbusters” and the other popular budget games like Kikstart. These games were not only popular in the UK but were also successful in other markets, such as Europe and the United States.
As the gaming industry grew, so did Mastertronic. They expanded their portfolio to include games for other platforms such as the Amiga and the Atari ST, and their games became increasingly popular. They also started to release their own hardware, including the Mastertronic Added Dimension (MAD) range of joysticks and peripherals.
Before the gaming market became more competitive, Mastertronic used to sell their games to distributors at a rate of 90 pence per unit. However, after the market became more competitive, the rate reduced to 80 pence per unit. On the other hand, Mastertronic sold the games directly to retailers at a higher rate of £1.30 per unit.
Mastertronic and the Sega Master System
In 1987, Mastertronic secured the rights to distribute the Sega Master System in the UK. This move proved to be a game-changer, as the Master System gained huge popularity in the country, out-selling Nintendo and their NES system. Mastertronic’s success with the Sega Master System made it the first truly successful market for the console. In the following years, they would also distribute the Sega Mega Drive and Sega Game Gear.
Acquisitions and Virgin Group’s Stake
In 1988, Mastertronic acquired Melbourne House, the parent company of Beam Software, which left the company with severe cashflow problems. To address these issues, the Virgin Group stepped in, buying a 45% stake in the company. This move proved to be a turning point for Mastertronic, as it led to a series of deals that saw the company renamed “Mastertronic Group Ltd.” Eventually, Mastertronic merged with Virgin Games, becoming Virgin Mastertronic. With Virgin’s support, Mastertronic took over Sega distribution in France and Germany.
Evolution and Sega’s Purchase
In the following years, Mastertronic phased out its traditional budget software strategy for home computers in favour of bigger releases for video game consoles. By 1991, the Mastertronic side of the company owed the vast majority of its profit to its distribution of Sega products. Sega eventually stepped in to purchase Mastertronic outright, with Virgin Games going its separate ways and becoming Virgin Interactive in 1994. Mastertronic formed the basis for Sega Europe, which remains a significant player in the video game industry to this day.
Some of My Favourite Mastertronic Games
Here’s a selection of Mastertronic games that are very nostalgic for me. I still own and play all of these games on my Commodore 64.
Kikstart 2
I was a fan of Junior Kickstart that used to come on British Terrestrial TV back in the 80’s and this games gave me a chance to have a go myself. This side scrolling motorbike games was challenging as you had to work out how fast you need to be for different obstacles and how to control your bike but it was addictive too. The fact that this version also had a course designer meant you were getting superb value for your £1.99
Kane
This fun cowboy game is only made up of a small number of levels but it is a lot of fun with some great sprite animation for the time. Riding horses, shooting a bow, and shootouts made this such a memorable game from my childhood.
Action Biker
In this game, the main character is Clumsy Colin who is in charge of driving a motorbike through various landscapes to gather equipment that enhances the bike’s performance. The ultimate objective is to collect all forty pieces of equipment, and then participate in a final drag race. However, the game imposes certain challenges on the player such as a time limit and a limited number of lives that are lost upon colliding with background obstacles.
Ghostbusters
Ghostbusters by Activision is one of my favourite games of all time and Mastertronic acquired the rights to release the budget version on home computers. This was the version that I purchased for £1.99 and the first game I got for my C64.
Mastertronic Software and Games Today
While Mastertronic is no longer the powerhouse it once was, the name lives on through a new, separate company focused on publishing games for modern consoles in the United Kingdom. Though the Mastertronic of today is vastly different from the company that once distributed Sega products, its legacy lives on as a significant player in the video game industry.
Mastertronic the Budget Game Pioneers
Mastertronic was a groundbreaking company that made a significant impact on the gaming industry. They introduced the concept of budget gaming and paved the way for future companies to follow in their footsteps. Today, budget gaming remains an important part of the industry, and their legacy lives on.
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