Sega Confirms New Business Strategy

Sega have today announced the radical shift in business plans they have been hinting at since October last year. Sega will team up with British-based PACE Micro Technology, PLC, the leading company in the set-top-box industry, to develop a home gateway product using Dreamcast technology. The product will be introduced to the public by PACE at roadshows, scheduled to take place in Britain and the USA at the end of this month. The set-top-box will incorporate network connectivity as the main feature of the Dreamcast, enabling access to what it describes as "diverse markets outside the gaming industry." Users with a broadband connection (xDSL, CATV, satellite and so on) will be able to watch television and other subscription-based channels, play games, use the Internet and more using a single box. The product moves Sega away from console-dependant business for the first time. The press release stresses the three major technological points quite implicitly. The product will...

Complete compatibility with all Dreamcast games is assured, including the many Sega has planned for the rest of this year. With this announcement, the home living room gateway market is now sure to be taken more seriously amongst the hardcore as well as the average consumer, and with broadband networks already pentrating the residential market, all sorts of content will be available. You will recall that one of Sega's failing points with the Dreamcast was that broadband wasn't widespread when they thought it would be. Hopefully they won't come unstuck again. Another interesting feature of the set-top-box is its built-in hard-disc. The size isn't mentioned, but it is thought that high bitrate television shows will be downloaded to it via broadband so that users can watch them again later. A form of streaming not dissimilar to Real Video will also be available to users. Ultimately, this move is the start of Sega's aims to be come the world's leading network gaming service provider, by focusing on the core businesses of...

The release included no information with regard to the Xbox rumours that surfaced last week. You can view the whole release here.