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The TeraDrive was a 16-bit PC with an integrated Mega Drive, manufactured by IBM for Sega. The system was only released in Japan, as Sega was hopeful that by integrating its then popular Mega Drive console into an IBM PC would be an attraction for potential customers wishing to purchase a PC. The system however proved unpopular with the Japanese market and ultimately failed. A new PC was also in the discussion stages to be developed by Sega under the leadership of ex-IBM executive Narutomi, but this likely never got past the discussion stages due to the failure of the TeraDrive.

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The TeraDrive was a 16-bit PC with an integrated Mega Drive, manufactured by IBM for Sega. The system was only released in Japan, as Sega was hopeful that by integrating its then popular Mega Drive console into an IBM PC would be an attraction for potential customers wishing to purchase a PC. The system however proved unpopular with the Japanese market and ultimately failed. A new PC was also in the discussion stages to be developed by Sega under the leadership of ex-IBM executive Narutomi, but this likely never got past the discussion stages due to the failure of the TeraDrive.