Sega To Leave Console Business? (Updated) 81
Raistlin Majere writes "Thought a few of you might be interested in checking this out, but according to The Gaming Intelligence Agency, Sega creators of the Dreamcast say that they are quitting the console hardware business, for the full story, click here. Just so you all know, no, they are not quitting quite yet, they're still fully supporting the Dreamcast, just, the Dreamcast will be their last console. "Thanks to skynet for a competing account of the story. This story chalks it up to mistranslation, and says that Sega will be staying in the console business, but focusing more on the Internet.
Too bad, but... (Score:1)
I can't tell you how much time I spent playing Virtua Fighter for the PC. They did a real knockup job on it. Same thing for the Sonic port. I don't know what they've got planned for the Internet, but I can't wait to see it.
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"You can't shake the Devil's hand and say you're only kidding."
Ah Man (Score:1)
This is big news! (Score:2)
However, nature abhors a vaccuum, and I suspect another company to fill the gap. And, knowing history, they, in turn will displace Nintendo, who will, in turn, be replaced by yet another company.
The reason for these kinds of shifts? Console companies stagnate, amazingly rapidly. Their life expectancy is not much longer than that of their products. In computing, if you stand still, you're going backwards.
No they're not! It's a mis-translation (Score:5)
Re:Won't be missed (Score:1)
Re: (Score:2)
To aviod the /. effect (Score:2)
Posted: 11.11.99
By: Mike Bess
The entire gaming industry was set on fire with one simple
phrase ealier today: Sega will be leaving the hardware market
and focus on networking and game development. This was
first broken by Gamespot, but the juicey tid-bit was quickly
lapped up by eager reporters everywhere. Even we were
sucked in, but just to play it safe gave a quick call to the good
folks at Sega of America. Considering the ramifications of
Sega "retreating" from the market, is pretty big stuff. Atomic,
in its proportions.
We spoke with two seperate sources within Sega of America.
Both confirmed that the earth-shattering news piece was a
simple mis-clarification. In fact, it was a mis-understanding in
the translations of Mr. Okawa's speech at last night's Okawa
Foundation Ceremony. Below are some excerpts from our
conversation:
"The question was something to the effect of 'If the
Dreamcast does not succeed, how will Sega compete in the
future?' Mr. Okawa's response (although it may have been a
little mangled in the translation) was that the 'future of Sega is
the Internet, not hardware.' What he was trying to convey
(and has been preaching for several months now) is that Sega
is going to be focusing its efforts increasingly on the Internet.
That means using the Internet as a delivery system for
software, online gameplay, e-commerce, etc. However, you
still need some form of hardware to receive that information.
Sega will not be delivering content for PSX2, Dolphin or the
PC through the Internet. So, Sega will always need to develop
some form of console."
"Mr. Okawa knows that Sega's strength against Sony and
Nintendo is its ability to pursue new technologies and
advances designed to expand the gameplay experience, such
as the Internet. Sony's PSX2 doesn't even have a built in
Internet solution, nor have either of our competitors outlined
any form of Internet strategy for their new systems, as we
have already done publicly."
Thankfully, the Sega faithful all across this tiny globe breathe
a collective sigh of relief. To even consider Dreamcast as the
company's last piece of hardware is almost unimaginable.
Furthermore, to believe that Mr. Okawa would make such a
damaging statement that "Sega is leaving the hardware
market" during the DC's infancy in North America and
Europe, is equally so. Sega worked hard to spread the word,
clarifying the mis-constrused words of Mr. Okawa.
For those keeping score, the speech Mr. Okawa gave
regarded the future of Dreamcast, Sega, and the establishment
of a new foundation in his honor. He told the press last night
that Sega would be putting greater emphasis on
video-gaming's networking abilities and that the commuinty
of the 21st Century would be a "networked society." Unveiled
at the ceremoney was the Dreamcast zip drive, a beautiful
peripheral to the Dreamcast as well as an Ethernet port which
would fit into the existing modem's slot. Lastly, the Okawa
Foundation's intention is to fund programs for youth and
schools which promotes technology and helps bring that
awareness further into the public consciousness.
Oh and if you were wondering, Mr. Okawa oversees over
ninety companies, including Sega Enterprises with an annual
salary of 7.5 billion dollars. He's the President of CSK Corp
which makes him the big cheese of a series of hi-tech and
mass-media firms. Sega X will keep you updated on any future
announcements by Mr. Okawa as well as the unfolding saga
of the zip drive and ethernet expansions.
Shooting themselves (Score:1)
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Re:It's a mis-translation, no its correct + ZIP... (Score:1)
No, you are wrong, the article (if you had read it) states that it was initially thought to be a mis-translation, but it was later confirmed to be true.
Anyway, the Dreamcast Zip drive is pretty chunky isn't it! It might include a couple of USB ports as well, but even so. And it only supports 100Mb media, not the 250Mb media! Obviously this means it should be possible to connect other USB devices though, but it would seem hard to install the drivers for it... USB hard drive anyone? (eek)
The Ethernet looks useful, and if Sega go into the software business you can expect their games to come out on both Dreamcast and PC, and then you can play the same game on both in a networked environment. Maybe Sonic Deathmatch could happen, although I would prefer a simpler game: SHOOT SONIC A LOT :-)
.... which says ... (Score:2)
In his speech, the guy basically said that Sega's emphasis would be on software and internet services.
The implication here is that Sega won't stop making consoles -- but that the console is not their business, it is merely an enabler for the *real* business, which is content production and delivery.
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Re:This is big news! (Score:1)
Re:.... which says ... (Score:1)
Re:No they're not! It's a mis-translation (Score:2)
It's just hardware (Score:2)
This makes more sense, sort-of. I guess they lose enough money on each console they sell. Since the money is in the software, they probably figure if they crank out another Sonic the Hedgehog or other such hit, they can be doing as well as (say) Id software. Or maybe it is due to the fact that the Sega Saturn was essentially a flop in the US (have you ever seen one?) Or maybe they just believe that PC games are the future and the console isn't necessary.
I think it's a bit of a silly move, though. I know far too many people who'd rather plug the darn thing into a big screen TV and drink a few beers to a Playstation game than sit around their $2000 PC and play games on a keyboard, mouse or single-joystick (I don't know of more than one or two obscure devices which allow you to connect more than one joystick). Also, if you own the console, you can get royalties for each software title that companies make for your platform. Nintendo has been doing it for years, and I'm sure Sega and Sony do it.
I guess Sega has been hit-and-miss in the business ever since they got into consoles. The first Sega console (what was it called again? The one with the cards or cartridges) wasn't that big a hit, then the Genesis was a hit, then the Saturn wasn't, now the Dreamcast _should_ be; Christmas season 1999 will decide.
Well, I won't be too sad to see them go since I haven't owned a console since the 8-bit Nintendo. I will be sad to see the competitive push diminish on the companies (Nintendo is no driver; they have been behind the times for years now). Ahh well..
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Re:.... which says ... (Score:2)
You can't always believe what Slashdot links to.
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"You can't shake the Devil's hand and say you're only kidding."
Re:.... which says ... (Score:2)
But the IGN article contains compelling supporting evidence for the "misunderstanding" theory, whereas the original article just says "this is true" and provides no backup.
I might just about be convinced that Sega would ditch its hardware business (although it seems very unlikely given the tremendous success of the Dreamcast so far), but I can't possibly believe that a company like Sega would actually *tell* the public about such an intention, when they have a two month old (in the West) console to market.
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stagnation of consoles? (Score:3)
Granted, no company can rest on its laurels for long. All console companies are constantly in development of the next best system, but that system will be released a few years after the last.
But older systems are still great... witness Final Fantasy VIII for Playstation, a game released a few months ago for a three or four year old platform. Graphically, the game is groundbreaking, and in terms of gameplay and plot, the game is amazing. A three year old computer is a Pentium 150 or so, which can barely run today's groundbreaking games... at least not w/o expensive upgrades such as a fast 3d card.
Though I do not doubt that someday the venerable Nintendo will be replaced, that does not mean that their current system is no longer a viable platform... but this round may be the last for them since they have historically been too late to market with their system... but that's an entirely different topic...
Re:Won't be missed (Score:1)
Console Compatibility (Score:1)
The PC Sonic Port (Score:2)
Sega paid the author of the free (gratis not libre, sadly) Genesis emulator KGen to use his work.
The package is actually KGen (hacked a little, I guess), the Genesis ROMS, and a front-end.
Now isn't that a refreshing attitude to emulation, from Sega. Nice to see after all that nastiness from Nintendo.
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Sega has always been revolutionary (Score:1)
Re:Console Compatibility (Score:2)
I have ten
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Re:Really? (Score:1)
M$ makes the OS - M$ makes ONE of the OSs, and AFAIK, only Sega Rally2 uses it.
M$ makes the games - I dont own any M$ games for my dreamcast, mainly becuase there arn't any (yet).
Multiple Joysticks.... (Score:1)
I'm focusing on the Internet, because I'm so hip (Score:1)
But what do such statements really mean? For Sega to concentrate on content is one thing, but what has the internet got to do with it? Two things: delivery of software, and networked gameplay.
Delivery is nothing to shout about. Packaged CD's will always be an effective distribution method for large amounts of data, and by the time the net is fast enough to make CD's seem small we'll all have those cool fluorescent multilayer disks [slashdot.org] with even more orders of magnitude of capacity. Sneakernet rules.
So that leaves networked gameplay. Will the bandwidth requirements always be reasonable? Maybe, if the net stays free. But you-know-who is buying their way into control of residential broadband access. It's already controlled by a very few cable and phone companies, and they're straining at the bit to start selling you their broadband content bundled with net access. What's to stop them from screwing up traffic on Dreamcast ports (oh, purely accidentally) and trying to sell you their games that for some reason have much better network performance? The game console manufacturers and developers have an enormous market, and there's no way that the big network powers are going to just let them keep it for themselves.
Call me paranoid, but I see all these mergers and cross-investments as steps toward turning the net into a big vending machine that will be controlled with the electro-economic equivalent of the muscle that the mobs use to use to control jukeboxes.
We're gonna need another revolution.
Re:Console Compatibility (Score:1)
Re:Won't be missed (Score:1)
but in terms, can't compare to the old.
Think of them as Horses of a different color, breed, etc.
We'll miss ya sega
Ooops (Score:1)
Re:.... which says ... (Score:1)
Re:The PC Sonic Port (Score:1)
What exactly is this mem e virus? word play?
I am sooo glad I held off on this one..... (Score:2)
Sega should sink by the wayside, and stop wasting a childs or parents hard-earned money.
I will enjoy my next generation nintendo Dolphin and Sony Playstation2 games. I will not buy into another Sega failure.
Or maybe, I will wait another 6 months and pick up a Dreamcast in the clearance bin for 29.99 if there are enough games that I can get for 5 bucks each.
Re:Really? (Score:1)
Dreamcast is dead (Score:1)
R.I.P. Dreamcast.
Kaa
This is not new... (Score:2)
There was talk back in the Saturn days that the Dreamcast (then code name Black Belt/Katana) would be dropped in favor or Sega just making games for any system available. The reasoning was that since their games are so popluar, selling them on multiple systems would bring Sega a lot of cash. Of course they took the gamble with Dreamcast and it seems (in the US anyway) to have paid off.
The talk recently has turned to how much has it actually paid off. Many people have speculated that this will be Sega's last hardware attempt in the console industry unless DC takes off phenominally. Sega is very much in the red right now, and has a lot of debt to pay off. Financially, down the road, ditching the money losing hardware section of the company in favor of software only may be the way for them to go to get back in the black.
You're mad! (Score:1)
Aliens in control of the Press (Score:1)
Re:Console Compatibility (Score:1)
Then again, use MAME! You'll play cross platform all the time!
Oh, and I already spotted a Dreamcast emulator called Nightmare!
Whoa!
They should (Score:1)
Again, it's untrue! (Score:2)
Sega takes a loss every time they sell a DreamCast, as does Sony and Nintendo for their hardware. The console hardware is sold below cost, but the hardware manufacturers makes t back every time you buy a game. Sega not only makes money off of sales of their own software (like Sonic Adventure or House of the Dead), but they also make money from the licensing fees paid by thrid party publishers. This makes it pretty damn profitable to be the producer of a hardware platform, so I would doubt that Sega would want to leave this market anytime soon.
Re:They should (Score:2)
(I acknowledge that PS2 may well eclipse it)
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Re:Again, it's untrue! (Score:2)
We've all said things that come out wrong, or that people are just too plain stupid to interpret correctly.
Here's a good analogy: IBM has repeatedly announced that its main business interest is solutions and services. The Sega story is kind of like Lou Gerstner saying "IBM will be concentrating on solutions and services", and some reporter rushing off and saying "IBM to stop writing software!".
BTW, the Dreamcast is *superb*. I already feel I've got my money's worth, and I only have two games so far (Power Stone and Sonic Adventure).
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Re:Sega has always been revolutionary (Score:1)
You are absolutely correct. As I've been telling my friends, "Nintendo talks the talk, and Sega walks the walk." Case and point: Game expandability.
Nintendo trumpeted on for months how the N64 Disk Drive would let them make dynamic enhancements to Zelda. Of course, the 64DD will never see the light of day. Sega, on the other hand, is already doing dynamic enhancements on the Dreamcast (in the form of downloadable events and additions to Sonic Adventure).
Dreamcast has some really neat stuff in it, and once again Sega has "raised the bar and changed the rules of the game" as MS would put it.
Put briefly, Sega always puts their ass on the line so people can enjoy the newest and most innovative gaming technology.
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Re:This is not new... (Score:1)
Re:I'm focusing on the Internet, because I'm so hi (Score:2)
If you can't envisage the kind of cool stuff possible with broadband to a console, you're just not thinking hard enough.
Think of the Ultima-Online-alike games/communities that could be set up, with the huge bandwidth provided by broadband.
Imagine if every time you played Sonic Adventure, the levels were changed - perhaps to suit the time of year, perhaps varying with today's climate in Tokyo, perhaps with references to current affairs. Imagine dropping your virtual pet at a virtual daycare centre, where you can interact with other virtual petowners.
Cheap broadband connectivity is the revolution you're talking about, and it's the home entertainment companies that are going to get it done. Just pray it's the gaming companies (who undertand interactivity) that spearhead it, rather than the TV/movie comapnies, or you'll find that it gets no more exciting than video-on-demand and flawed email implementations (Sky Digital email sucks pole).
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Re:.... which says ... (Score:2)
Before the SNES came out, people were happily fragging undead marines?
No.
The kind of games people rave about 10+ years later are things like Super Mario Bros (1986). Console games. Games that anyone can play, with minimal pissing about - because the more people actually manage to get the game running the more people there are to continue raving about it 10, 20, 30 years later.
As late as 1996, maybe later still, you had to write a new config.sys and autoexec.bat file for almost every DOS game you owned; and you needed a pretty good working knowledge of XMS and EMS memory (whatever the hell they were), and how to configure them.
To be fair, DOOM was pretty well behaved in that respect.
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Re:This is not new... (Score:1)
That's what happens when you listen to... (Score:1)
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"Every jumbled pile of person has a thinking part that wonders what the part that isn't thinking isn't thinking of." -Where Your Eyes Don't Go, by They Might Be Giants
Kind of backdoor NC for client? (Score:1)
If Sun gets their vision of NCs in the corporate workplace, I can see a gradual convergence between work & home of networked client/server applications.
Saturation of the entertainment sphere? (Score:1)
Given the increasing development costs, risk of market boredom, and sophistication of computer games (ie special effects) I would predict either a shake-out of the gaming industry or else a move towards Hollywood linkups (a la Phatom Menance) where the game is part of a combined movie + merchandising tie-in. Here Sony has the edge compared with Sega or Nitendo but other big players like Disney could easily muscle in. Perhaps it'll be Quake the Movie next?
LL
Re:It's a mis-translation, no its correct + ZIP... (Score:1)
Have a Mario, Sonic, Crash, etc. skins and then see which console mascot in Doom or Quake can shoot out the others!?
Re: (Score:1)
Re: Longevity of games. (Score:1)
Second of all, the key factor in a game's longevity is remembering how much fun it was to play then, not how much to play now. I guarantee if you pick up Super Mario Bros. or Duck Hunt, or Donkey Kong that you'll enjoy playing it for about 15 minutes. (Which, to be fair, is longer than I'd ever play Mortal Kombat Gold.)
Third, niether console nor PC has cornered the market on game longevity. Sure, I fondly remember the early FF series, and Mario Kart and the like. But I remember equally fondly the days I passed playing Civ, MOO, and Star Control 2. --------------------------------------------- "Maybe one day soon it'll all come out, how you dream about each other sometimes. With the memory of how you once gave up, but you made it through the troubled times." Troubled Times, by Fountains of Wayne
Re: (Score:1)
Re:Sega has always been revolutionary (Score:2)
Sega's got other problems (Score:1)
It looks like the company is due for some kind of change, anyway.
The Downward Spiral (Score:2)
game spot and journalism (Score:1)
Re:Think first, then act, people... (Score:1)
The guys over at GameSpot are so enamored of themselves, they can hardly take any time to actually write game news anymore. They're the MTV of game review industry. Similar to MTV's current schedule of asanine progamming sprinkled with some music videos every once in a while, GameSpot spends more time talking about what their reviewers think would be cool than actually reviewing stuff. Get your news from real sources, people, try checking the Sega site maybe. After all, if they were going to can their hardware department, who would they want to tell the public about it? Their own PR department, or someone else's? You do the math.
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"Just can't stand this bobbin' and pretendin', list'nin' to some bullethead and the madness that he's sayin'."
Your Racist Friend, by They Might Be Giants
Re:Sega has always been revolutionary (Score:1)
Saturn wasn't really that bad, assuming you actually owned the system and didn't buy into the general populace's hype of how much it sucked.
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Re:I am sooo glad I held off on this one..... (Score:1)
Re:Do NOT repeat history!!! (Score:1)
Ehm... Sorry, but the iMacs use IDE and PCI devices... That's an IBM based technology...