Though criticized for its poorly timed launch and costly subscription fee, the Sega Channel has been praised for its innovations in downloadable content and impact on online game services.

[1] Due to Meganet's low number of games, high price, and the Mega Drive's lack of success in Japan, the system was a commercial failure.

[6] At its peak, the Sega Channel had over 250,000 subscribers, but by 1997, the number had dropped to 230,000,[10] two years after Nakayama shifted focus from the Genesis to the Saturn.

[11] In late November of 1997 it was announced that the Sega Channel would be shut down on June 30, 1998,[11] but it ended up staying on for another month, finally being discontinued on July 31, 1998.

[2] After making the initial purchase and paying the activation fee, Genesis owners would receive an adapter that would be inserted into the cartridge slot of the console.

[6] Starting up a Genesis console with an active Sega Channel adapter installed would prompt for the service's main menu to be loaded, which was a process that took approximately 30 seconds.

[6] In Canada, and across South America and Europe, however, the satellite transmission stage was bypassed altogether in favor of direct uploads of the Sega Channel CD-ROM via a cable television headend.

Some of these games had reduced content compared to their cartridge release so that they could fit the adapter's memory, such as Super Street Fighter II.

The service also contained a lockout system, which would allow parents to set a passcode in order to access mature-rated content.

[14][17] The service also hosted contests, such as a promotion with Electronic Arts' Triple Play '96, and a 1995 event where players who completed Primal Rage during a brief 24-hour period where the full game was accessible were given a phone number to call, making them eligible to win prizes.

[6] Retrospective reception of the Sega Channel praises its innovation and role in the development of online gaming, but criticizes its high subscription fees and timing into the market.

"[6] Buchanan echoes the same sentiments, stating, "Perhaps if the SEGA Channel had been released earlier in the console's lifecycle—the Genesis launched in 1989 in America—things might have turned out differently.