diff --git a/source/genesis.c b/source/genesis.c
index e8fd34c..cac055e 100644
--- a/source/genesis.c
+++ b/source/genesis.c
@@ -327,8 +327,33 @@ void gen_reset(int hard_reset)
 
   /* reset Z80 */
   z80_reset();
-}
 
+  /* some Z80 registers need to be initialized on Power ON */
+  if (hard_reset)
+  {
+    /* Power Base Converter specific */
+    if (system_hw == SYSTEM_PBC)
+    {
+      /* startup code logic (verified on real hardware): */
+      /* 21 01 E1 : LD HL, $E101
+         25 -- -- : DEC H
+         F9 -- -- : LD SP,HL
+         C7 -- -- : RST $00
+         01 01 -- : LD BC, $xx01
+      */
+      Z80.hl.w.l = 0xE001;
+      Z80.sp.w.l = 0xDFFF;
+      Z80.r = 4;
+    }
+
+    /* Master System specific (when BIOS is disabled) */
+    else if ((system_hw & SYSTEM_SMS) && (!(config.bios & 1) || !(system_bios & SYSTEM_SMS)))
+    {
+      /* usually done by BIOS & required by some SMS games that don't initialize SP */
+      Z80.sp.w.l = 0xDFFF;
+    }
+  }
+}
 
 /*-----------------------------------------------------------------------*/
 /*  OS ROM / TMSS register control functions (Genesis mode)              */
diff --git a/source/z80/z80.c b/source/z80/z80.c
index cb11685..7a1754d 100644
--- a/source/z80/z80.c
+++ b/source/z80/z80.c
@@ -31,6 +31,7 @@
  *      This Z80 emulator assumes a ZiLOG NMOS model.
  *
  *   Additional changes [Eke-Eke]:
+ *    - Removed z80_burn function (unused)
  *    - Discarded multi-chip support (unused)
  *    - Fixed cycle counting for FD and DD prefixed instructions
  *    - Fixed behavior of chained FD and DD prefixes (R register should be only incremented by one
@@ -3358,11 +3359,9 @@ void z80_init(const void *config, int (*irqcallback)(int))
   Z80.daisy = config;
   Z80.irq_callback = irqcallback;
 
-  /* Reset registers to their initial values (NB: should be random on real hardware) */
-  AF = BC = DE = HL = 0;
+  /* Clear registers values (NB: should be random on real hardware ?) */
+  AF = BC = DE = HL = SP = IX = IY =0;
   F = ZF; /* Zero flag is set */
-  IX = IY = 0xffff; /* IX and IY are FFFF after a reset! (from MAME) */
-  SP = 0xdfff;  /* required by some SMS games that don't initialize SP */
 
   /* setup cycle tables */
   cc[Z80_TABLE_op] = cc_op;
@@ -3411,20 +3410,6 @@ void z80_run(unsigned int cycles)
   }
 } 
 
-/****************************************************************************
- * Burn 'cycles' T-states. Adjust R register for the lost time
- ****************************************************************************/
-void z80_burn(unsigned int cycles)
-{
-  if( cycles > 0 )
-  {
-    /* NOP takes 4 cycles per instruction */
-    int n = (cycles + 3) / 4;
-    R += n;
-    Z80.cycles += 4 * n * 15;
-  }
-}
-
 /****************************************************************************
  * Get all registers in given buffer
  ****************************************************************************/
diff --git a/source/z80/z80.h b/source/z80/z80.h
index 49d361a..d505775 100644
--- a/source/z80/z80.h
+++ b/source/z80/z80.h
@@ -62,7 +62,6 @@ extern unsigned char (*z80_readport)(unsigned int port);
 extern void z80_init(const void *config, int (*irqcallback)(int));
 extern void z80_reset (void);
 extern void z80_run(unsigned int cycles);
-extern void z80_burn(unsigned int cycles);
 extern void z80_get_context (void *dst);
 extern void z80_set_context (void *src);
 extern void z80_set_irq_line(unsigned int state);