Sega Defends Dreamcast's Future

Despite reports to the contrary, Sega remains committed to making the Dreamcast console.

On Wednesday the company issued a statement saying it is considering expanding its software business to supply games for platforms other than its own Dreamcast system, but that it will continue manufacturing the console.

The statement was issued in response to a report in a Japanese newspaper's Wednesday morning edition that Sega plans shortly to discontinue manufacturing the Dreamcast console. Sega will stop accepting orders for Dreamcast consoles from April 1 but will continue manufacturing the unit from parts already in inventory until they run out, the newspaper says.

Sega, which is locked in a fierce battle for control of the home video game industry with Sony Computer Entertainment and Nintendo, says in the statement it remains committed to the Dreamcast platform and plans to release 100 titles for the system in the coming year, although it fell short of flatly denying the newspaper report. This mirrors a stance taken by Sega of America, which issued a statement late Tuesday in the U.S. after news of the Japanese report broke.

"Sega of America stated today that the company globally reaffirms its commitment to Dreamcast. In fact, Sega has more than 100 games worldwide coming out for the platform in the next year. It is not Sega's policy to comment on rumors and the company has not made any statement regarding ceasing manufacturing of Dreamcast or development for other videogame platforms," the statement says.

The newspaper report comes a day after a Japanese news agency reported the company is on the verge of unveiling a new business plan that will see it begin producing games for rival Sony's PlayStation 2 platform and the upcoming Xbox from Microsoft.

In its statement Wednesday morning, Sega confirms that it was considering the option of producing software for the PlayStation 2 and GameBoy Advance platforms. The latter is the latest version of Nintendo's GameBoy system.

In addition, Sega says it is also considering the use of the Dreamcast architecture in other devices such as personal computers and television set top boxes.