This watch is a high end item, due to what it's made of. It is actually silver & gold (unlike regular watches which tend to be steel) and the whole thing is metal. As you can see here, it has a Sonic 2 theme (with the peeking Tails art, quite small on the number-less face) and SEGA '92 for the year it was produced/given out. It also has a simple date function.
This watch is rare, because it was only given to Sega employees and was not something that could simply be bought. It was actually donated by a Sega employee to the auction block to be sold off for charity vs the Japan earthquake of 2011. So it commanded a very high price, and the money went to help victims of the disaster, further propelling the watch into the records as something that's really great.