I first came across the Sega Master System back in 1988. I had a NES, but there was a store in a mall that used to sell and rent SMS games. I played many games there, and that's how I became a hooked with the SMS. Even though I had a NES at the time, I always liked the design of the Sega Master System. I also loved the squared white boxes in which games were packaged.
By the mid 1989, I realized I had made a mistake which was buying a NES instead of a SMS. The next year I sold my NES, and bought a Genesis. When I found out that there was a converter that allowed you to play SMS games, I started to look for it. In 1991 I bought the Power Base Converter and my first two SMS games: Zaxxon and R-Type. I didn't have the 3D-Glasses at that time, so I played Zaxxon in 2-D, but I was amazed with R-Type. I rented many games like Fantasy Zone, Scamble Spirits, Monopoly, Galaxy Force, Double Dragon, and many more. Then I bought Phantasy Star, Y's: The Vanished Omens, and Golden Axe Warrior.
Then my interest in SMS games was slowly dying, and I did not buy more games until 1998, when I came across several sites in the internet about the SMS. Now I am starting to build up my collection. I don't have many games, and I don't have the original Sega Master System, I still use the power base converter to play SMS games on my Genesis, and I am still looking for a SMS in very good shape, and with its box. On the bright side, I am glad I have some things which are not very easy to find like Phantasy Star complete with its box and instructions in excellent condition, the 3-D Glasses, Ys, and Golden Axe Warrior.
Here in Mexico, the SMS was not as popular as the NES. The main reasons are: first, that the SMS didn't have third party support, and second, the lack of proper advertising. Another reason is that in Mexico, the SMS and the games were very expensive in comparison with the NES and its games. Here many people recognized the SMS as a better machine even though many of those owned a NES. Because everyone's friends had a NES, many people bought a NES instead of a SMS.
When the SMS II came out, the importers were trying to sell it and the games, and there were quite a few places where you could buy SMS games. An important thing is that there were lots of games to choose from: the US releases and imported ones were being sold here. For example, I remember seeing Pit Fighter, Mercs, and many others. If I am right, these games were not plastic covered, but instead they had a blue seal on the black side of the box, with the words SEGA on it. The thing is that the games were far too expensive. By the end of 1992, the games were being sold at a good price, but not many were interesed in the SMS.
The end of 1993 brought a drop in the prices of the SMS games, and you could buy games for as low as the equivalent to 10 dollars. The last time I saw a new game in a store was in 1995.
I will make the above information more complete in the future. Right now I have the start of a list of Imported games (in relation to the US) that were available here in Mexico.