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To: patrick tang who wrote (18569)	5/26/1999 7:47:00 PM
From: E. Graphs	Read Replies (1) \| Respond to of 25814

Sega's strategy for its game machine. eet.com TOKYO — Sega Enterprises Ltd. will offer a 56-kilobit/second modem for the U.S. version of its next-generation Dreamcast game console. "We are focusing on establishing Internet infrastructure," said Shoichiro Irimajiri, president of Sega, which disclosed its network strategy at the recent Electronic Entertainment Expo (E3) in Los Angeles. Sega reported that more than 250,000 Japanese Dreamcast users are already accessing the Internet through the game machine. Sega introduced Dreamcast in Japan with a 33.6-kbit/s modem, the first attempt to make a modem standard equipment on a game system. The modem was designed to connect to the console through a socket, and "it can be upgraded to any speed modem," said a Sega engineer. Irimajiri stressed that Internet functionality is Dreamcast's point of differentiation. A recent contract with Iomega Corp. for a customized Zip drive for Dreamcast is billed as preparation for a slew of Internet-based applications for Dreamcast — not only Web browsing but also networked games and other interactive services. Sony's upcoming Playstation 2 is seen as a menace for Dreamcast's future. Irimajiri said the Sony system "seems to be a very powerful machine, but it uses two large-scale chips, and the semiconductor industry sees that it won't be easy to fabricate and the cost will be high. We expect that it will take about three to four years for Playstation 2's price to drop to the $200 range. By then, Dreamcast will be the most powerful machine [in the market] with its Internet capability." Sega will introduce Dreamcast to the United States on Sept. 9 with a suggested retail price of $199. It expects to sell 4 million units worldwide in the current fiscal year, ending in March 2000. The company is aggressively promoting Dreamcast, and had sold 900,000 units in Japan by the end of March....<<