To: rll who wrote (3537 ) 11/29/1999 1:08:00 PM From: D.J.Smyth Respond to of 5023
Write-Up on Sega Dreamcast on Hoovers today:hoovers.com (IOM not mentioned specifically) SEGA Enterprises, Ltd. by Jennifer Hinger Millions of sore thumbs mean a milestone for SEGA Enterprises. Battling Sony and Nintendo for market share in the video game industry, SEGA has sold more than one million of its 128-bit Dreamcast consoles in North America in less than three months since its launch. With more urgency than a child telling Santa how much he needs that Dreamcast, SEGA needed a boost to stay in the $6.3 billion video game arena. Its SegaSaturn system in the mid-1990s didn't push the right buttons with buyers, and sales were disappointing, especially compared to Sony's PlayStation. To stay in video gaming, SEGA needed something faster (how about 10 times?) than the PlayStation, with next-generation graphics and Internet connectivity. SEGA delivered, and video game fans responded; by comparison, it took the PlayStation nine months after its 1995 debut to sell one million units. SEGA's US stock price reflects Dreamcast's commercial success ? and what that success suggests for the company's future. ADR's for SEGA's stock had already climbed considerably since mid-summer, but they rocketed up 36% on Friday to $6.56 on news that SEGA will split off its video arcade operations and focus its video game efforts on games offered over the Internet, with IPOs of some of its software units likely. But Sony and Nintendo aren't boxed out just yet. The companies have dropped their prices to $99, half of Dreamcast's price, and they're working on faster, better systems as well. Sony's creatively named PlayStation2 is expected to be released in Japan in March. Also in 2000 Nintendo plans to enter the DVD-based world with its Dolphin system, and Microsoft plans a next-generation system called X-Box. But that's next year. With this year's holiday shopping season officially underway, Dreamcast sales will keep climbing. Too bad for SEGA, though, that it doesn't have a piece of Pokāmon, the cartoon monsters that have launched a feverish buying spree among US and Japanese children. (Nintendo has the video game rights.) Too bad as well that SEGA would have a hard time piggybacking on the third major craze among kids in 1999: the antithesis of video games, those pesky Harry Potter books from Scholastic.