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Copyright 1999 Business Wire, Inc.
Business Wire
November 24, 1999, Wednesday 08:18 AM Eastern Time
DISTRIBUTION: Business Editors/High Tech Writers
LENGTH: 1002 words
HEADLINE: Consumer Demand for Sega Dreamcast Outdistances Records Set by Tickle Me Elmo and Sony PlayStation
DATELINE: SAN FRANCISCO, Nov. 24, 1999
BODY:
Time Digital Magazine calls it the "Machine of the Year."
Popular Science Magazine says it is one of the "Best of What's New for 1999." And to back up such praise, Sega Dreamcast(TM), the most advanced videogame system ever created, has set yet another sales record. Sega(R) of America, Inc. has announced that the new 128-bit, Internet-ready Sega Dreamcast videogame system has reached a sell-through milestone of one million units in North America since its launch on Sept. 9, 1999. This sales landmark easily surpasses previous records set by other retail sales phenomenon, such as Tickle Me Elmo(TM) and Sony PlayStation(TM).
Sega originally predicted Sega Dreamcast would hit the one million-unit mark just after Christmas, but with today's announcement, the company has reached the goal in just over two and a half months -- a full six weeks ahead of schedule. In contrast, Sony PlayStation, which launched in September 1995, sold one million units in nine months, according to NPD Group of Port Washington, N.Y.
In 1996, it took Tyco Toys' much-sought-after Tickle Me Elmo doll more than five months to reach one million units sold, and the highly-touted Apple (Nasdaq:AAPL) iMac personal computer sold one million units in six months. According to industry analyst, Sean McGowan of Gerard Klauer Mattison, "One million units in the United States has long been considered a minimum threshold for a platform to be considered successful, and it's a level that usually takes longer than 90 days to reach."
Sega Dreamcast is also seeing record-breaking sales in Europe. Since it was launched on Oct. 14, Sega Dreamcast has sold more than 400,000 units in that territory, easily surpassing previous company estimates and sales numbers recorded by the competition.
In addition to hardware sales in North America, software is also selling at a brisk pace. Sega of America today reported a 3:1 software to hardware sales tie ratio that is expected to continue through the holiday season. This new statistic, which states that for every console purchased the typical consumer also buys three games, increases the average sale transaction to approximately $325.
"It is clear by reaching the million units sold mark that Sega Dreamcast hardware and software are going to be key profit centers for our retail outlets, as well as our online store at www.kbkids.com, this holiday season," said James Mackenzie, divisional merchandise manager -- video of KB Toys. "The consumer rush we saw on this product when it launched in September will only escalate as we head into the important fourth-quarter holiday shopping season."
Sega Dreamcast launched a little over two months ago with 19 games, and will have more than 40 games available for the holiday sales season. Sega is anticipating that "Sega Sports(TM) NFL 2K," "Sonic Adventure(TM)," "Sega Bass Fishing(TM)," "Toy Commander(TM)" and "Sega Sports NBA 2K" will be popular games for holiday.
Sega Dreamcast, which retails for $199 is available at major retail outlets around the nation, including Ames, Babbages, Best Buy, BJ's, Boscov's, Bradlee's, CompUSA, Electronics Boutique, Funcoland, FAO Schwartz, Fry's, J&R, KB Toys, Sam's, Software Etc., The Wiz, Toys R Us, Transworld, Walmart, as well as online shopping destinations, such as sega.com, amazon.com, etoys.com, kbkids.com and toysrus.com.
"Sega Dreamcast's milestone is the interactive entertainment industry's equivalent to having a record go platinum or having a movie reach the $100 million mark," says Chris Gilbert, senior vice president of sales, Sega of America. "By hitting the one million units sold landmark, it is clear that the Sega Dreamcast consumer has moved beyond the hardcore gamer and into the mass market."
"We anticipate a record-breaking holiday sales season, for both hardware and software like those seen by the must-have products of past years, including Tickle Me Elmo, Furby(TM) and Beanie Babies(R)," continued Gilbert.
About Sega Dreamcast
Sega Dreamcast is available in the U.S. at a suggested retail price of $199, with a built in 56K modem, allowing for full Internet functionality. The system had 18 titles available at launch that will grow to more than 40 titles by the end of the year. Third-party titles currently in the works will bring the total Sega Dreamcast game library count to more than 160 in the year 2000.
Along with its low price point, Sega Dreamcast has achieved other industry firsts. Its advanced 128-bit architecture makes it the first console with evolutionary capabilities, allowing it to grow and change to match advances in technology and the needs and desires of the consumer. Sega Dreamcast is also the most powerful video game console ever created. It is 15 times more powerful than a Sony PlayStation(TM), ten times more powerful than a Nintendo(TM) 64 and has four times the graphics processing power of the fastest Pentium II processor.
In the first 24 hours of availability, Sega Dreamcast netted over$97 million at retail, more than tripling the past entertainment industry record set by Star Wars: The Phantom Menace at $28 million on its first day. In its initial four days, Sega sold a total of 372,000 Sega Dreamcast systems, easily surpassing the previous industry record holder, Nintendo 64, which took six days to hit 350,000 when it launched in 1996.
About Sega
Sega of America is the arm of Tokyo-based Sega Enterprises, Ltd. responsible for the development, marketing and distribution of Sega videogame systems and videogames in the Americas. Sega Enterprises, Ltd. is a nearly $2.5 billion company recognized as the industry leader in interactive digital entertainment media, and is the only company that offers interactive entertainment experiences both inside and outside the home. Sega of America's World Wide Web site is located at www.sega.com.
Note to Editors: Images of Sega Dreamcast and Sega Dreamcast games are available at ftp://ftp.accesspr.com/public/Sega.
CONTACT: Access Communications for Sega of America
Colby Grimes, 415/904-7070, ext. 253
cgrimes@accesspr.com
Megan Gilardi, 415/904-7070, ext. 233
mgilardi@accesspr.com
URL: businesswire.com
LANGUAGE: ENGLISH
LOAD-DATE: November 24, 1999
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