Sega Pinball was established in 1994 when Sega acquired Data East Pinball, a move that allowed the company to expand its presence in the arcade gaming industry beyond video games. Data East had been producing pinball machines since the late 1980s, and under Sega’s ownership, the pinball division continued to develop high-energy, licensed-themed games. Many of Sega Pinball’s releases were based on popular franchises, reflecting Sega’s arcade-driven approach. Some of its most notable machines included Batman Forever (1995), Apollo 13 (1995), which featured a groundbreaking 13-ball multiball, and The Lost World: Jurassic Park (1997), capitalizing on the blockbuster movie’s success.

Despite producing several innovative and commercially successful games, Sega Pinball faced increasing challenges as the pinball industry declined in the late 1990s. Home gaming consoles and changing arcade trends led to a shrinking market for traditional pinball. In 1999, Sega decided to exit the pinball business and sold the division to Gary Stern, who rebranded it as Stern Pinball, Inc. This transition marked the birth of what would become the longest-running pinball manufacturer in modern history. While Sega Pinball was short-lived, its influence carried over into Stern’s early years, preserving much of the talent and design philosophy that had been developed during the Data East and Sega era.