Sega to build games, not platforms...
02/02/2001 12:55:00 AM MST Albuquerque, Nm
By Dustin D. Brand; Owner AMO
Segas' sales are dim, and platforms are out...
SEGA Entertainment has been building games and the systems to play them on for more than a decade now. Sega built the original Sega System, the Genesis, the Sega CD system (the first game based CD system I might add), the Saturn, and finally the Dreamcast.
Not meeting their first estimates for their Dreamcast platform which has been competing with Nintendo and Sony for marketshare, Sega reestimated their projections for units sold. Now after the second reestimation, Sega has called it quits, and reduced the US price of the Dreamcast to $99 to get rid of the excess inventory, and recoop some losses.
This news comes after many see the looming release of the XBOX from Microsoft, and the GameCube from Nintendo as a problem for Sega, and Sony for that matter. Sega will now focus solely on games. They have announced that they will build games for the upcoming XBOX, the GameCube, the current PS2, and other's, please see below picture, direct from Sega.
Sega is most famous for their game, Sonic the Hedgehog (he's in the middle above). Other game platform manufacturers like Atari, and NEC have also met such outcomes, however Sega plans to stick around a while, just building games for the above systems.
Sega's Dreamcast is a great system. It runs Windows CE (Consumer Electronics) as it's Operating System, and uses Microsofts' DirectX for graphics, not quite the XBOX, but a revolutionary start. I would attribute much of Sega's shortage in sales to Sony and their over hyped PS2. To see a run down on the XBOX vs PS2 vs Nintendo's GameCube, please check out "AMO Looks into the XBOX".
During the launch of the Sega Dreamcast, Sega began building a high-speed gaming network on the internet, and they spent $100 Million to do it. I would think the majority of the games they create, will utilize this network, possibly even in a subscription based model.
Microsoft has changed everything in the game platform world, and I'm happy to see Sega become a game publisher for the XBOX, but also disappointed that Sony and their PS2 beat the Dreamcast. Now it's down to 3, Sony, Nintendo, and Microsoft, the FIRST American company in the market now.