Game over for Dreamcast

By Christina Okoli

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'TRADE in your videogame controller for a keyboard and start typing for your life.' This was the launch slogan for one of Sega's latest games, yet the words have taken on new meaning as rumours erupt that Sega is to terminate production of its flagship games console Dreamcast, in March this year.

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Dreamcast favourite Sonic

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When Sega launched the console, it set the target of 5 million US sales by the end of 2000, yet although Dreamcast had several months head-start on its main rival, Sony's PlayStation 2, the Dreamcast only managed to mustered a disappointing 2.6 million unit sales.

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And, towards the end of last year, the situation got far worse for Sega, when Sony finally released PlayStation 2 under a barrage of media hype. The PS2 console boasted a dazzling array of next-generation features, such as a 128-bit 'emotion engine' processing chip�and a DVD player, all of which helped it to overshadow the Dreamcast, and eventually nudge it out of the market.

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Despite continual�price cuts and a multibillion pound global marketing campaign, which included the sponsorship of UK football team Arsenal, sales of Dreamcast continued to fall short of expectations. The final straw was pulled when computer giant Microsoft announced its entry into the game console industry with the launch of its Xbox, a high-technology console that is expected to outdo even Sony's PS2.

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So, does this signal the end of Sega's classic games such as Sonic the Hedgehog, Phantasy Star and Crazy Taxi

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Well, sources close to the company say that Sega is planning to shift its most popular games to other platforms, while the company focuses on doing what it does best, and repositioning itself as a software creator, providing games for the Internet, mobile phones and other consoles such as PS2, Xbox and Nintendo's soon to be released GameCube.

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A spokeswoman for Sega responded to the speculation by saying, 'We are studying various options, including ending the production of Dreamcast. But we are still considering the matter.'

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On the news that Sega is to possibly end production of Dreamcast, the company's share price surged up more than 18%, as investors saw the move as a sign of the company's willingness to reassess its priorities and move into back profit.

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A full statement from the company, officially announcing the suspension of Dreamcast, is expected in the coming days, as the industry prepares itself to mourn the first causality of the game console war.