Sega has said today that it might end production of its Dreamcast
games console and is negotiating with Sony and Nintendo to supply
games. A company spokesman said an official announcement will be
made when a decision has been made.
The news helped raise the share value of the company by 15% in
early trading today in Tokyo. Analysts see Sega’s strength in its
games development, not its consoles.
Sega is possibly admitting defeat in a market where it trails
behind both Sony and Nintendo. Microsoft’s Xbox is due for release
later this year. Some reports suggest that Sega is also negotiating
the possibility of development work for the Xbox and planning to
incorporate Dreamcast technology in other manufacturers’ set-top
boxes.
Sega has made losses in each of the past three years and has
warned investors that it anticipates losses of around $200 million
in the current financial year, ending in March.
