 | |
 North American Dreamcast with controller andVMU | |
| Manufacturer | Sega |
|---|---|
| Type | Home video game console |
| Generation | Sixth |
| Release date | |
| Introductory price |
|
| Discontinued |
|
| Units sold | 9.13 million[1] |
| Media | GD‑ROM,CD‑ROM |
| CPU | Hitachi SH-4 @ 200 MHz |
| Memory | 16 MB RAM, 8 MB video RAM, 2 MB audio RAM |
| Removable storage | 128 KB VMU |
| Display | |
| Graphics | NEC PowerVR2 @ 100 MHz |
| Sound | Yamaha AICA @ 67 MHz withARM7 CPU, 64 channels |
| Online services | |
| Dimensions | 195.8 × 190 × 75.5 mm (7.71 × 7.48 × 2.97 in) |
| Weight | 1.5 kg (3.3 lb) |
| Best-selling game | Sonic Adventure (2.5 million) |
| Predecessor | Sega Saturn |
TheDreamcast[a] is the finalhome video game console manufactured bySega. It was released in Japan on November 27, 1998, in North America on September 9, 1999, in Europe on October 14, 1999 and in Australia on November 30, 1999. It was the firstsixth-generation video game console, precedingSony'sPlayStation 2,Nintendo'sGameCube, andMicrosoft'sXbox. The Dreamcast's discontinuation in 2001 ended Sega's 18 years in the console market.
A team led byHideki Sato began developing the Dreamcast in 1997. In contrast to the expensive hardware of the unsuccessfulSaturn, the Dreamcast was designed to reduce costs withoff-the-shelf components, including aHitachiSH-4CPU and anNECPowerVR2GPU. Sega used theGD-ROM disc format to avoid the expense ofDVD licensing. To speed game development, the console could run a custom version ofWindows CE for easier PC gameporting and shared hardware with Sega'sNAOMI system board, enabling authenticarcade game conversions. The Dreamcast was the first console to include a built-in modularmodem for internet access andonline play.
Though its Japanese release was beset by supply problems, the Dreamcast had a successful US launch backed by a large marketing campaign. However, sales steadily declined as Sony built anticipation for the PlayStation 2. Dreamcast sales did not meet Sega's expectations, and attempts to renew interest through price cuts caused significant financial losses. After a change in leadership, Sega discontinued the Dreamcast on March 31, 2001, withdrew from the console business, and restructured itself as athird-party developer. A total of 9.13 million Dreamcast units were sold worldwide andover 600 games were produced. Its bestselling game,Sonic Adventure (1998)—the first3D game in Sega'sSonic the Hedgehog series—sold 2.5 million copies.
The Dreamcast'scommercial failure has been attributed to several factors, including competition from the PlayStation 2, limited third-party support, and the earlier failures of the32X and Saturn having tarnished Sega's reputation. In retrospect, reviewers have celebrated the Dreamcast as one of the greatest consoles. It is considered ahead of its time for pioneering concepts such as online play anddownloadable content. Many Dreamcast games are regarded as innovative, includingSonic Adventure,Crazy Taxi (1999),Shenmue (1999),Jet Set Radio (2000), andPhantasy Star Online (2000). The Dreamcast remains popular in the video gamehomebrew community, which has developedprivate servers to preserve its online functions andunofficial Dreamcast software.
In 1988, Sega released theGenesis (known as the Mega Drive in most countries outside North America), in thefourth generation of video game consoles.[2] It became the most successful Sega console ever, at 30.75 million units sold.[1] Its successor, theSaturn, was released in Japan in 1994.[3] The Saturn isCD-ROM-based and has2D and3D graphics, but its complex dual-CPU architecture was more difficult to program than its chief competitor, theSonyPlayStation.[4] Although the Saturn debuted before the PlayStation in Japan and the United States,[5][6] its surprise US launch, four months ahead of schedule,[7][8][9] was limited to four retailers due to a lack of supply, which "aggravated" other retailers. Developers also found it easier to program for the Playstation, which caused a loss of support from these game developers.[10] Losses on the Saturn[11] contributed to financial problems for Sega, whose revenue had declined between 1992 and 1995 as part of an industry-wide slowdown.[5][12][13]
Sega announced thatShoichiro Irimajiri would replaceTom Kalinske as chairman and CEO of Sega of America,[14][15][16] whileBernie Stolar, a former executive atSony Computer Entertainment of America,[17][18] became Sega of America's executive vice president in charge of product development and third-party relations.[15][16] After the 1996 launch of theNintendo 64, sales of the Saturn and its software fell sharply. As of August 1997, Sony controlled 47 percent of the console market,Nintendo controlled 40 percent, and Sega controlled only 12 percent; neither price cuts nor high-profile games helped the Saturn.[18]
I thought the Saturn was a mistake as far as hardware was concerned. The games were obviously terrific, but the hardware just wasn't there.
Hayao Nakayama resigned as president of Sega in January 1998 in favor of Irimajiri,[20] and Stolar acceded to become CEO and president of Sega of America.[18][21] Following five years of generally declining profits,[22] in the fiscal year ending March 31, 1998, Sega suffered its first parent and consolidated financial losses since its 1988 listing on theTokyo Stock Exchange,[23] reporting a consolidated net loss of¥35.6 billion (US$269.8 million).[22] Shortly before announcing its financial losses, Sega announced the discontinuation of the Saturn in North America to prepare for the launch of its successor.[18][20] This effectively left the Western market without Sega games for more than a year.[4] Rumors about the upcoming Dreamcast—spread mainly by Sega—leaked to the public before the last Saturn games were released.[24]
As early as 1995, reports surfaced that Sega would collaborate withLockheed Martin,The 3DO Company,Matsushita orAlliance Semiconductor to create a newgraphics processing unit, which conflicting accounts said would be used for a 64-bit "Saturn 2" or an add-on peripheral.[25][26][27] Dreamcast development was unrelated.[26][28] Considering the Saturn's poor performance, Irimajiri looked beyond Sega's internal hardware development division to create a new console.[28] In 1997, he enlistedIBM's Tatsuo Yamamoto to lead an eleven-person team to work on a secret project in the United States with the codename Blackbelt. Accounts vary on how an internal team led byHideki Sato also began development on Dreamcast hardware; one account specifies that Sega tasked both teams,[29] and another suggests that Sato was bothered by Irimajiri's choice to begin development externally and had his team start work.[28][30] Sato and his group chose theHitachiSH-4 processor architecture and theVideoLogicPowerVR2 graphics processor, manufactured byNEC, in the production of themainboard. Initially known as Whitebelt,[28] the project was later codenamed Dural, after themetallic female fighter from Sega'sVirtua Fighter series.[24][29]
Yamamoto's group opted to use3dfxVoodoo 2 andVoodoo Banshee graphics processors alongside aMotorola PowerPC 603ecentral processing unit (CPU),[28] but Sega management later asked them to also use the SH-4 chip.[29] Both processors have been described as "off-the-shelf" components.[28] According to Charles Bellfield, the former Sega of America vice president of communications and former NEC brand manager, presentations of games using the NEC solution showcased the performance and low cost delivered by the SH-4 and PowerVR architecture. He said that Sega's relationship with NEC, a Japanese company, likely also influenced the decision to use its hardware rather than the architecture developed in America.[29] Stolar felt the US 3dfx version should have been used, but that "Japan wanted the Japanese version, and Japan won".[29] As a result, 3dfx filed a lawsuit against Sega and NEC claiming breach of contract, which was settled out of court.[28]
The choice to use the PowerVR architecture concernedElectronic Arts (EA), a longtime developer for Sega consoles. EA had invested in 3dfx but was unfamiliar with the selected architecture, which was reportedly less powerful.[29] According to Shiro Hagiwara (a general manager at Sega's hardware division) and Ian Oliver (the managing director of the Sega subsidiary Cross Products), the SH-4 was chosen while still in development, following lengthy deliberation, as the only processor that "could adapt to deliver the 3D geometry calculation performance necessary".[31] By February 1998, Sega had renamed the project Katana, after theJapanese sword,[24] although certain hardware specifications such asrandom access memory (RAM) were not finalized.[32]
Knowing the Saturn had been set back by its high production costs and complex hardware, Sega took a different approach with the Dreamcast. Like previous Sega consoles, the Dreamcast was designed around intelligentsubsystems working in parallel,[31] but the selections of hardware were closer to personal computers than video game consoles, reducing cost.[28] It also enabled software development to begin before any development kits had been completed, as Sega informed developers that any game developed with aPentium II 200 in mind would run on the console.[33] According to Damien McFerran, "themotherboard was a masterpiece of clean, uncluttered design and compatibility".[28]
The Chinese economist and future Sega.com CEO Brad Huang convinced the Sega chairman,Isao Okawa, to include amodem with every Dreamcast under opposition from Okawa's staff over the additionalUS$15 cost per unit.[34][35][36] To account for rapid changes in home data delivery, Sega designed the modem to bemodular.[31]
Sega selected theGD-ROM (Gigabyte Disc) media format.[37] Jointly developed by Sega andYamaha, the GD-ROM could be mass-produced at a similar price to a normal CD-ROM,[31] avoiding the greater expense of newerDVD-ROM technology.[28][38][39]
_Windows_CE_logo.png){kind=logo}
Microsoft developed a custom Dreamcast version ofWindows CE withDirectXAPI anddynamic-link libraries, making it easy toport PC games to the platform,[31] although programmers would ultimately favor Sega's development tools over those from Microsoft.[28] A member of the Project Katana team speaking anonymously predicted this would be the case, speculating developers would prefer the greater performance possibilities offered by the Sega OS to the more user-friendly interface of the Microsoft OS.[32] In late 1997, there were reports about the rumored system, then codenamed Dural, and that it had been demonstrated to a number of game developers.[40]
The Dreamcast was finally revealed on May 21, 1998 in Tokyo.[41] Sega held a public competition to name its new system and considered over 5,000 different entries before choosing "Dreamcast"—a portmanteau of "dream" and "broadcast".[28] According to Katsutoshi Eguchi, Japanese game developerKenji Eno submitted the name and created the Dreamcast's spiral logo, but this has not been officially confirmed by Sega.[42] Former Sega executive Kunihisa Ueno confirmed in his biography that abranding agency called Interbrand created the logo for the console, with Kenji Eno volunteering to name the console. Eno was paid for his involvement and signed aNDA to prevent his involvement from going public.[43][44]
The Dreamcast's startup sound was composed by the Japanese musicianRyuichi Sakamoto.[45] Because the Saturn had tarnished its reputation, Sega planned to remove its name from the console and establish a new gaming brand similar to Sony'sPlayStation, but Irimajiri's management team decided to retain it.[28] Sega spentUS$50–80 million on hardware development,$150–200 million on software development, andUS$300 million on worldwide promotion—a sum which Irimajiri, a formerHonda executive, humorously likened to the investments required to design new automobiles.[28][46]
Despite a 75 percent drop in half-year profits just before the Japanese launch, Sega was confident about the Dreamcast. It drew significant interest and many pre-orders.[28] However, Sega could not achieve its shipping goals for the Japanese Dreamcast launch due to a shortage ofPowerVR chipsets caused by a high failure rate in the manufacturing process.[28][47] As more than half of its limited stock had been pre-ordered, Sega stopped pre-orders in Japan. On November 27, 1998, the Dreamcast launched in Japan at a price of¥29,000, and the stock sold out by the end of the day. However, of the four games available at launch, only one—a port ofVirtua Fighter 3, the most successful arcade game Sega ever released in Japan—sold well.[48] Sega estimated that an additional200,000–300,000 Dreamcast units could have been sold with sufficient supply.[48]
Sega had announced thatSonic Adventure, the next game starring its mascot,Sonic the Hedgehog, would launch with the Dreamcast and promoted it with a large-scale public demonstration at theTokyo Kokusai Forum Hall,[49][50][51] but it andSega Rally Championship 2 were delayed.[28] They arrived within the following weeks, but sales continued to be slower than expected.[52] Irimajiri hoped to sell over one million Dreamcast units in Japan by February 1999, but sold fewer than 900,000, undermining Sega's attempts to build aninstalled base sufficient to protect the Dreamcast after the arrival of competition from other manufacturers.[53] There were reports of disappointed Japanese consumers returning their Dreamcasts and using the refund to purchase additional PlayStation software.[54]Seaman, released in July 1999, became the Dreamcast's first major hit in Japan.[4][34][55] Prior to the Western launch, Sega reduced the price of the Dreamcast to¥19,900, effectively making it unprofitable but increasing sales. The reduction and the release ofNamco'sSoulcalibur helped Sega gain 17 percent on its shares.[28]
Before the Dreamcast's release, Sega was dealt a blow whenElectronic Arts, the largest third-party video game publisher at the time, announced it would not develop games for the system. EA's chief creative officerBing Gordon said that Sega had "flip-flopped" on the hardware configuration, that EA developers did not want to work on it, and that Sega "was not acting like a competent hardware company". Gordon also said that Sega could not afford to give them the "kind of license that EA has had over the last five years".[29] According to Stolar, president of EA at the time, Larry Probst, wanted exclusive rights as the only sports brand on Dreamcast, which Stolar could not accept due to Sega's recentUS$10 million purchase of thesports game developerVisual Concepts. While EA'sMadden NFL series had established brand power, Stolar regarded Visual Concepts'NFL 2K as superior and would provide "a breakthrough experience" to launch the Dreamcast.[19][29] While none of EA's popular sports games were released for the Dreamcast, "Sega Sports" titles developed mainly by Visual Concepts[56] helped to fill that void.[29]
Let's take the conservative estimate of 250,000 Dreamcast units at presale—that's a quarter of a million units at$200. We'll have a ratio of 1.5 or two games for every Dreamcast unit sold. That's half a million units of software. We think we'll be .5 to one onVMUs and peripheral items such as extra controllers and what have you. This could be a$60 to 80 million 24-hour period. What has ever sold$60 to 80 million in the first 24 hours?
Working closely withMidway Games (which developed four North American launch games for the system) and taking advantage of the ten months following the Dreamcast's release in Japan, Sega of America worked to ensure a more successful US launch with a minimum of 15 launch games.[58] With lingering bitterness over the Saturn's early release, Stolar repaired relations with major US retailers, with whom Sega presold 300,000 Dreamcast units.[29] In addition, a pre-launch promotion enabled consumers to rent Dreamcasts fromHollywood Video starting on July 14.[59] Sega of America's senior vice president of marketingPeter Moore,[60] a fan of the attitude previously associated with Sega's brand, worked withFoote, Cone & Belding and Access Communications to develop the "It's Thinking" campaign of 15-second television commercials, which emphasized the Dreamcast's hardware power.[29][61][62] According to Moore: "We needed to create something that would really intrigue consumers, somewhat apologize for the past, but invoke [sic] all the things we loved about Sega, primarily from the Genesis days."[29] On August 11, Sega of America confirmed that Stolar had been fired, leaving Moore to direct the launch.[58][63]
The Dreamcast launched in North America on September 9, 1999, at a price of$199, which Sega's marketing dubbed "9/9/99 for$199".[4][53][61] Nineteen launch games were available in the US.[61][64][65] Sega set a new sales record by selling more than 225,132 Dreamcast units in 24 hours, earning$98.4 million in what Moore called "the biggest 24 hours in entertainment retail history".[29] Within two weeks, US Dreamcast sales exceeded 500,000 units.[29] By Christmas, Sega held 31 percent of the North American video game market share.[66] Significant launch games includedSonic Adventure, the arcadefighting gameSoulcalibur, andVisual Concepts' football simulationNFL 2K.[29][60] On November 4, Sega announced it had sold over one million Dreamcast units in North America.[67] The launch was marred by a glitch at one of Sega's manufacturing plants, which produced defective GD-ROMs.[68]
Sega released the Dreamcast in Europe on October 14, 1999,[67] at a price of £200.[28] By November 24, 400,000 consoles had been sold in Europe.[67] By Christmas of 1999, Sega of Europe had sold 500,000 units, six months ahead of schedule.[28] The price was dropped to £149.99 from September 8, 2000, with sales at around 800,000 in Europe at this point.[69] Announcing the drop, Jean-François Cecillon, CEO of Sega Europe, commented: "There are 'X' amount of core gamers in Europe; the early adopters. We have reached 80 or 90 per cent of them now and the market is screaming for a price reduction. We have to acknowledge these things and go with the market".[70] Sales did not continue at this pace, and by October 2000, Sega had sold only about one million units in Europe.[71] As part of Sega's promotions of the Dreamcast in Europe, it sponsored four Europeanfootball clubs:Arsenal (England),[72]Saint-Étienne (France),[73]Sampdoria (Italy),[74] andDeportivo de La Coruña (Spain).[69]
Through the regional distributorOzisoft, the Dreamcast went on sale in Australia and New Zealand on November 30, 1999, at a price ofA$499.[75] The launch was planned for September, but was delayed due to problems with Internet compatibility and launch game availability, then delayed again from the revised date of October 25 for various reasons.[76][77][b] There were severe problems at launch; besides a severe shortage of the consoles, only six of the thirty planned launch games were available for purchase on day one with nofirst-party software included, and additional peripherals were not available in stores.[80]
The Ozisoft representative Steve O'Leary, in a statement released the day of launch, explained that theAustralian Customs Service had impounded virtually all the supplied launch software, including demo discs, due to insufficient labeling of theircountry of origin; Ozisoft had received them only two days before launch, resulting in few games that were catalogued and prepared for shipment in time. O'Leary also said that the Dreamcast's high demand in other markets had reduced the number of peripherals allotted to the region.[81] Further complicating matters was the lack of an internet disc due to localization problems, and delays in securing an ISP contract, which was done throughTelstra the day before launch. The online component was not ready until March 2000, at which point Ozisoft sent the necessary software to users who had sent in a filled-outreply paid card included with the console.[82][83][84] The poor launch, combined with a lack of advertising and a high price point, produced lackluster sales in Australia; two large retail chains reported a combined total of 13 console sales over the first few days after launch.[83][85]
Though the Dreamcast launch was successful, Sony held 60 percent of the overall video game market share in North America with the PlayStation at the end of 1999.[67] On March 2, 1999, Sony revealed the first details of thePlayStation 2 (PS2), whichKen Kutaragi said would allow video games to convey unprecedented emotions.[86][87] Sony estimated the PS2 could render 7.5 million[88] to 16 million polygons per second, whereas independent estimates ranged from 3 million to 20 million,[89][90] compared to Sega's estimates of more than 3 million to 6 million for the Dreamcast.[37][31] The PS2 would also use theDVD-ROM format, which could hold substantially more data than the Dreamcast's GD-ROM,[91] and would be backwards-compatible with hundreds of popular PlayStation games.[5][91] Sony's specifications appeared to render the Dreamcast obsolete months before its US launch, although reports later emerged that the PS2 was not as powerful as expected and difficult to develop on.[12][89][92] The same year, Nintendo announced that its next console, theGameCube, would meet or exceed anything on the market, and Microsoft began development of its own console, theXbox.[93][94][95]
US Dreamcast sales—which exceeded 1.5 million by the end of 1999[96]—began to decline as early as January 2000.[97] Poor Japanese sales contributed to Sega's ¥42.88 billion ($404 million) consolidated net loss in the fiscal year ending March 2000, which followed a loss of ¥42.881 billion the previous year and marked Sega's third consecutive annual loss.[98][99] Although Sega's overall sales for the term increased 27.4%, and Dreamcast sales in North America and Europe greatly exceeded expectations, this coincided with a decrease in profitability due to the investments required to launch the Dreamcast in Western markets and poor software sales in Japan.[98] At the same time, increasingly poor market conditions reduced the profitability of Sega's Japanese arcade business, prompting Sega to close 246 locations.[98][100]
Moore became the president and chief operating officer of Sega of America on May 8, 2000.[101] He and Sega's developers focused on the US market to prepare for the upcoming launch of the PS2.[102] To that end, Sega of America launched its own internet service provider, Sega.com, led by CEO Brad Huang.[35][103][104] On September 7, 2000, Sega.com launchedSegaNet, the Dreamcast'sinternet gaming service, at a subscription price of $21.95 per month.[104][105] Although Sega had previously released only one Dreamcast game in the US that featured online multiplayer,ChuChu Rocket!,[105] the launch of SegaNet combined with the release ofNFL 2K1, with a robust online component, was intended to increase demand for the Dreamcast in the US market.[104][106] The service later supported games includingBomberman Online,Quake III Arena, andUnreal Tournament.[29] The September 7 launch coincided with a new advertising campaign to promote SegaNet, including advertising on theMTV Video Music Awards that day, which Sega sponsored for the second consecutive year.[105][107] Sega employed aggressive pricing strategies around online gaming; in Japan, every Dreamcast sold included a free year of internet access, which Okawa personally paid for.[108] Prior to the launch of SegaNet, Sega had already offered a $200 rebate to any Dreamcast owner who purchased two years of internet access from Sega.com.[109][110] To increase SegaNet's appeal in the US, Sega dropped the price of the Dreamcast to$149 (compared to the PS2's US launch price of$299) and offered a rebate for the full$149 price of a Dreamcast, and a free Dreamcast keyboard, with every 18-month SegaNet subscription.[28][104][105]
Moore said that the Dreamcast would need to sell 5 million units in the US by the end of 2000 to remain a viable platform; Sega fell short of this goal, with some 3 million units sold.[66][111] Moreover, Sega's attempts to spur increased Dreamcast sales through lower prices and cash rebates caused escalating financial losses.[112] Instead of an expected profit, for the six months ending September 2000, Sega posted a¥17.98 billion ($163.11 million) loss, with a projected year-end loss of¥23.6 billion.[113] This estimate more than doubled to¥58.3 billion,[114] and in March 2001, Sega posted a consolidated net loss of¥51.7 billion ($417.5 million).[115] While the PS2's October 26 US launch was marred by shortages, this did not benefit the Dreamcast as much as expected; many consumers continued to wait for a PS2, while thePSone, a remodeled version of the original PlayStation, became the bestselling console in the US at the start of the 2000 holiday season.[66][116][117] According to Moore, "The PlayStation 2 effect that we were relying upon did not work for us... People will hang on for as long as possible... What effectively happened is the PlayStation 2 lack of availability froze the marketplace."[118] Eventually, Sony and Nintendo held 50 and 35 percent of the US video game market, while Sega held only 15 percent.[28] According to Bellfield, Dreamcast software sold at an 8-to-1 ratio with the hardware, but the small install base meant this did not produce enough revenue to keep it viable.[119] During the course of 2000, the PlayStation had sold five times more than Dreamcast despite being five year old hardware.[120]
We had a tremendous 18 months. Dreamcast was on fire - we really thought that we could do it. But then we had a target from Japan that said we had to make x hundreds of millions of dollars by the holiday season and shift x millions of units of hardware, otherwise, we just couldn't sustain the business. Somehow I got to make that call, not the Japanese. I had to fire a lot of people; it was not a pleasant day. So onJanuary 31st 2001 we said Sega is leaving hardware. We were selling 50,000 units a day, then 60,000, then 100,000, but it was just not going to be enough to get the critical mass to take on the launch of PS2. It was a big stakes game. Sega had the option of pouring in more money and going bankrupt and they decided they wanted to live to fight another day.
On May 22, 2000, Okawa replaced Irimajiri as president of Sega.[122] Okawa had long advocated that Sega abandon the console business.[123] His sentiments were not unique; Sega co-founderDavid Rosen had "always felt it was a bit of a folly for them to be limiting their potential to Sega hardware", and Stolar had suggested Sega should have sold their company to Microsoft.[19][124] In September 2000, in a meeting with Sega's Japanese executives and the heads of the company's major Japanese game development studios, Moore and Bellfield recommended that Sega abandon its console business and focus on software, prompting the studio heads to walk out.[29]
Amid speculation and rumors, Sega executives denied to the media that it would leave the console hardware business.[125] Nevertheless, on January 31, 2001, Sega announced the discontinuation of the Dreamcast after March 31 and the restructuring of the company as a "platform-agnostic" third-party developer,[126][127] although with continued Dreamcast software support for some time.[128] Sega also announced a price reduction to$99 to eliminate its unsold inventory, which was estimated at 930,000 units as of April 2001.[129][130] After a further reduction to $79, the Dreamcast was cleared out of stores at$49.95.[131][132] The final Dreamcast unit manufactured was autographed by the heads of all nine of Sega's internal game development studios, plus the heads of Visual Concepts and Sega's sound studio Wave Master, and given away with all 55 first-party Dreamcast games through a competition organized byGamePro.[133] Okawa, who had previously loaned Sega$500 million in 1999, died on March 16, 2001; shortly before his death, he forgave Sega's debts to him and returned his$695 million worth of Sega and CSK stock, helping Sega survive the transition to third-party development.[134][135] As part of this restructuring, nearly one third of Sega's Tokyo workforce was laid off in 2001.[136]
9.13 million Dreamcast units were sold worldwide.[1] Despite the discontinuation of Dreamcast hardware, Sega continued to support the system and had stated that more than 30 new titles were confirmed for release for the remainder of 2001.[128] In the United States, official game releases continued until the end of the first half of 2002.[19] Sega continued to repair Dreamcast units until September 2007.[137][138] Many hardware developers that worked on the Dreamcast also joinedpachinko andpachislot companySammy Corporation, who soon merged with Sega. Hideki Sato pushed for leftover Dreamcast parts being used as displays in the machines that Sammy develops, including the very successfulFist of the North Star pachinko machines.[139]
After five consecutive years of financial losses, Sega finally posted a profit for the fiscal year ending March 2003.[140]
The announcement of Sega's exit from hardware was met with enthusiasm. According toIGN's Travis Fahs, "Sega was a creatively fertile company with a rapidly expanding stable of properties to draw from. It seemed like they were in a perfect position to start a new life as a developer/publisher."[19] FormerWorking Designs president Victor Ireland wrote, "It's actually a good thing ... because now Sega will survive, doing what they do best: software."[61] The staff ofNewsweek wrote that "fromSonic toShenmue, Sega's programmers have produced some of the most engaging experiences in the history of interactive media ... Unshackled by a struggling console platform, this platoon of world-class software developers can do what they do best for any machine on the market."[141]Game Informer, commenting on Sega's tendency to produce under-appreciatedcult classics, wrote: "Let us rejoice in the fact that Sega is making games equally among the current console crop, so that history will not repeat itself."[142]
The Dreamcast measures 190 mm × 195.8 mm × 75.5 mm (7.48 in × 7.71 in × 2.97 in) and weighs 1.5 kg (3.3 lb).[37] Its mainCPU is a two-way 360MIPSsuperscalar HitachiSH-432-bitRISC,[31][143] clocked at 200 MHz with an 8kBinstruction cache and 16 kB data cache and a 128-bit graphics-orientedfloating-point unit delivering 1.4GFLOPS.[31] Its 100 MHzNEC PowerVR2 rendering engine, integrated with theASIC, can draw more than 3 millionpolygons per second[37] and usedeferred shading.[31] Sega estimated the Dreamcast's theoretical rendering capability at 7 million raw polygons per second, or 6 million with textures and lighting, but noted that "game logic and physics reduce peak graphic performance".[31]
Graphical hardware effects includetrilinear filtering,gouraud shading,z-buffering,spatial anti-aliasing,per-pixel translucency sorting andbump mapping.[31][37] The Dreamcast canoutput approximately16.77 million colors simultaneously and displaysinterlaced orprogressive scan video at 640 × 480video resolution.[37] Its 67 MHz Yamaha AICA[144] sound processor, with a 32-bitARM7 RISC CPU core, can generate 64 voices withPCM orADPCM, providing ten times the performance of the Saturn's sound system.[31] The Dreamcast has 16MB main RAM, along with an additional 8 MB of RAM for graphic textures and 2 MB of RAM for sound.[31][37] It reads media using a 12× speed YamahaGD-ROM drive.[37] In addition to Windows CE, the Dreamcast supports several Sega andmiddlewareapplication programming interfaces.[31]
The Dreamcast can supply video through several accessories includingA/V cables,RF modulator connectorsS-Video cables andSCART. AVGA adapter allows Dreamcast to connect oncomputer displays orenhanced-definition television sets in480p.[144]
Sega constructed numerous Dreamcast models, most of which were exclusive to Japan. The R7, a refurbished Dreamcast, was originally used as a network console in Japanese pachinko parlors. Another model, the Divers 2000 CX-1, is shaped similarly to Sonic's head and includes a television and software for teleconferencing. AHello Kitty version, limited to 2000 units, was targeted at female gamers in Japan.[145] Special editions were created forSeaman[146] andResident Evil – Code: Veronica.[147] Color variations were sold through the Dreamcast Direct service in Japan.[148]Toyota also offered special Dreamcast units at 160 of its dealers in Japan.[149] In North America, a limited edition black Dreamcast was released with a Sega Sports logo on the lid, which included matching Sega Sports-branded black controllers and two games.[150]
The Dreamcast has four ports for controller inputs, and was sold with one controller. The controller is based on theSaturn 3D controller and includes an analog stick, aD-pad, four action buttons, start button and two analog triggers.[144] It received mostly negative reviews from critics;Edge described it as "an ugly evolution of Saturn's 3D controller",[151] and was called "[not] that great" by1Up.com's Sam Kennedy[152] and "lame" byGame Informer's Andy McNamara.[153]IGN wrote that "unlike most controllers, Sega's pad forces the user's hands into an uncomfortable parallel position".[154] Both the analog joystick and triggers uniquely usedHall effect sensors, which requires less calibration and leads to fewer issues withjoystick drift.[155][156][157]
Various third-party controllers, from companies such asMad Catz, include additional buttons and other features;[144] third parties also manufactured arcade-style joysticks for fighting games, such as Agetech's Arcade Stick and Interact's Alloy Arcade Stick.[144][158] Mad Catz and Agetec created racing wheels for racing games.[144] Sega did not release its officiallight guns in the US,[144][159] but some third party light guns were available.[144] The Dreamcast supports a Sega fishing "reel and rod"motion controller and a keyboard for text entry.[144][160] Although it was designed for fishing games such asSega Bass Fishing,[158]Soulcalibur is playable with the fishing controller, which translates vertical and horizontal movements into on-screen swordplay;IGN cited it as a predecessor to theWii Remote.[160] The Japanese Dreamcast port of Sega'sCyber Troopers Virtual-On Oratorio Tangram supported a "Twin Sticks" peripheral, but its American publisher,Activision, opted not to release it in the US.[161] The Dreamcast can connect toSNK'sNeo Geo Pocket Color, predating Nintendo'sGameCube – Game Boy Advance link cable.[61]
In most regions, the Dreamcast includes a removable modem for online connectivity, which is modular for future upgrades.[31] In Brazil, due to the high price of the console, the modem was sold separately.[162] The original Japanese model and all PAL models have a transfer rate of 33.6 kbit/s, and consoles sold in the US and in Japan after September 9, 1999, feature a56 kbit/s dial-up modem.[163] Broadband service was enabled through the later release of a broadband accessory in 2000 in Japan,[164] and early 2001 in the US.[165][166][167]
Sega also produced the Dreameye, a digital camera that could be connected to the Dreamcast and used to exchange pictures and participate invideo chat over the internet. Sega hoped developers would use the Dreameye for future software, as some later did with Sony's similarEyeToy peripheral.[168][169] In addition, Sega investigated systems that would have allowed users to make telephone calls with the Dreamcast, and discussed withMotorola the development of an internet-enabled cell phone that would use technology from the console to enable quick downloads of games and other data.[168]
In contrast to the Sega CD and Sega Saturn, which included internal backup memory,[160] the Dreamcast uses a 128 kbytememory card, theVMU, for data storage.[170][31] The VMU features a smallLCD screen, audio output from a one-channelPWM sound source,[171]non-volatile memory, a D-pad and four buttons.[31][171][158] The VMU can present game information, be used as a minimal handheld gaming device,[168] and connect to certain Sega arcade machines.[31][160][170] For example, players use the VMU to call plays inNFL 2K or raise virtual pets inSonic Adventure.[160][172]
Sega officials noted that the VMU could be used "as a private viewing area, the absence of which has prevented effective implementation of many types of games in the past".[31] After a VMU slot was incorporated into the controller's design, Sega's engineers found many additional uses for it, so a second slot was added.[31] It is generally for vibration packs providingforce feedback,[171] such as Sega's "Jump Pack"[158] and Performance's "Tremor Pack";[144] it can be used for peripherals including a microphone, enabling voice control and player communication.[31] Various third-party cards provide storage, and some contain the LCD screen addition.[144]Iomega announced a Dreamcast-compatiblezip drive storing up to100 MB on removable discs,[144] but it was never released.[28]
The Dreamcast library consists of over 600 games across all regions,[173] in GD-ROM format.[37] It usesregional lockout, only playing games released within its predetermined region; however, this is circumventable viamodchip installation, boot discs, or cheat discs such asDatel'sAction Replay.[174][175][176] In Japan, the Dreamcast was launched withVirtua Fighter 3tb,Pen Pen TriIcelon,Godzilla Generations, andJuly.[177] In North America, it launched with 19 games, including the highly anticipatedSonic Adventure,Soulcalibur, andNFL 2K.[c][178] In Europe, it was planned to launch with 10 games; this increased to 15 after the launch was delayed.[d][181] Licensed Dreamcast games were released until mid-2002 in the US.[19] Someindie developers continued to release games, such as 2007'sLast Hope, developed by the German studioNG:Dev.Team.[182]
In what has been called "a brief moment of remarkable creativity",[4] in 2000, Sega restructured its arcade and console development teams into nine semi-autonomous studios headed by their top designers.[19][61][183] Studios includedUnited Game Artists (UGA),Hitmaker,Smilebit,Overworks,WOW Entertainment,Amusement Vision,Sega Rosso, Wave Master, andSonic Team,[184] whileSega AM2 had been taken over earlier in the year byCSK Research Institute[185] and became independent in 2001 as SEGA-AM2 Co., Ltd.[186] Sega's design studios were encouraged to experiment and benefited from a relatively lax approval process.[168] This resulted in games such as UGA'sRez, an attempt to simulatesynaesthesia in the form of arail shooter;[187][188][189] Wow'sThe Typing of the Dead, a version ofThe House of the Dead 2 remade into atouch typing trainer;[190][191][192] and Hitmaker'sSegagaga, a Japan-exclusiverole-playing game in which players are tasked with preventing Sega from going out of business.[193]
Sonic Team'sSonic Adventure, the first fully 3Dplatform game starring Sega's mascot Sonic the Hedgehog, was considered the "centerpiece" of the Dreamcast launch.[4] At 2.5 million copies, it is the best-selling Dreamcast game.[39][194] Sonic Team also developed the Dreamcast's first online game—ChuChu Rocket!—which was praised for its addictive puzzle gameplay and "frantic" multiplayer matches,[195][196][197] and the critically successful music gameSamba de Amigo, which was noted for its expensive maracas peripheral and colorful aesthetic.[198][199][200] Sonic Team'sPhantasy Star Online, the first online console RPG, is considered a landmark game for refining and simplifyingDiablo's style of gameplay to appeal to console audiences.[108][201][202]
UGA created themusic gameSpace Channel 5 for a female casual audience;[203] players help a female outer-space news reporter, Ulala, fight aliens with "groove energy" by dancing.[56][204] Hitmaker's arcade ports includeCrazy Taxi, anopen-world arcaderacing game known for its addictive gameplay with more than one million copies sold;[4][191] andVirtua Tennis, which revitalized the tennis game genre.[4][205][206] Smilebit'sJet Set Radio, in which players control a Tokyo gang of rebelliousinline skaters, is cited as a major example of Sega's commitment to original concepts during the Dreamcast's lifespan.[207][208]Jet Set Radio also popularizedcel shaded graphics,[4][209] though it failed to meet Sega's sales expectations.[208][210][211] Therole-playing gameSkies of Arcadia, developed by Overworks and produced byRieko Kodama,[212] was acclaimed for its surrealJules Verne-inspired fantasy world of floating islands and sky pirates, charming protagonists, exciting airship battles and memorable plot.[4][213][214]
AM2 developed what Sega hoped would be the Dreamcast'skiller app,Shenmue, a "revenge epic in the tradition ofChinese cinema",[19][215] with a level of detail considered unprecedented for a video game.[216] Incorporating asimulated day-and-night cycle with variable weather,non-player characters with regular schedules, the ability to pick up and examine detailed objects, and introducing thequick-time event in its modern form,[216][217]Shenmue went over budget and was rumored to have cost Sega over $50 million.[218][216][219] According to Moore,Shenmue sold "extremely well", but had no chance of making a profit due to the Dreamcast's limited installed base.[220]
Visual Concepts'NFL 2K football series and itsNBA 2K basketball series were critically acclaimed.[221]NFL 2K was considered an outstanding launch game for its high-quality visuals[60][222] and "insightful, context-friendly, and, yes, even funnycommentary",[172] whileNFL 2K1 featured groundbreaking online multiplayer earlier than its chief competitor, EA'sMadden NFL series.[29][223][206]Madden and2K continued to compete on other platforms through 2004, with the2K series introducing innovations such as afirst person perspective new to the genre,[224] and eventually launchingESPN NFL 2K5 at the aggressively low price point of $19.95 until EA signed an exclusive agreement with theNational Football League, effectively putting every other pro-football game out of business.[225][226] After Sega sold Visual Concepts for $24 million in 2005, theNBA 2K series continued with publisherTake-Two Interactive.[195][227] During the Dreamcast's lifespan, Visual Concepts also collaborated with theSonic the Hedgehog level designerHirokazu Yasuhara on the action-adventure gameFloigan Bros.[228] and developed theaction gameOoga Booga.[229]
Before the launch of the Dreamcast in Japan, Sega announced itsNAOMI[230] arcade board, a cheaper alternative to theSega Model 3.[231] NAOMI shares the same technology as the Dreamcast, with twice as much system, video, and audio memory and a 160 MBflash ROM board in place of a GD-ROM drive, allowing nearly identicalhome conversions ofarcade games.[4][31] Games were ported from NAOMI to the Dreamcast by several leading Japanese arcade companies, includingCapcom andNamco.[4] The Dreamcast also used parts similar to those found in personal computers with Pentium II andIII processors, allowing a handful of ports ofPC games.[232][233]
To appeal to the European market, Sega formed a French affiliate,No Cliché, which developed games such asToy Commander.[4][234] Sega Europe also approachedBizarre Creations to develop the racing gameMetropolis Street Racer.[235] AlthoughAcclaim, SNK,Ubisoft, Midway, Activision,Infogrames, and Capcom supported the Dreamcast during its first year,[29] third-party support proved difficult to obtain due to the failure of the Sega Saturn and the profitability of publishing for the PlayStation.[28] Namco'sSoulcalibur, for example, was released for the Dreamcast because of the relative unpopularity of theSoul series at the time; Namco's more successfulTekken franchise was associated with the PlayStation console and PlayStation-based arcade boards.[4] Capcom produced a number of fighting games for the Dreamcast, including thePower Stone series, and a temporarily exclusive[236] entry in the popularResident Evil series,Resident Evil – Code: Veronica.[195][237][238] The Dreamcast is known for severalshoot 'em ups, most notablyTreasure'sBangai-O andIkaruga.[4][236][239] Sega also revived franchises from the Genesis era, such asAppaloosa Interactive'sEcco the Dolphin.[29]
Dricas was an Internet service for Dreamcast consoles in Japan. The service launched the week of October 28, 1998, with its feature set expanded in the weeks preceding the Dreamcast's launch in Japan on November 27, 1998.[240] Much of its infrastructure was developed by ISAO Corporation, which wasspun-off from Sega on November 26, 1999.[241] Its accompanying web browser, Dream Passport, provided the ability to connect via dial-up, browse the internet, receive and send e-mail, and chat with other users.[242] Dricas persisted until March 7, 2000, when the service was consolidated into ISAO's multi-platform online service, isao.net.[243] Isao.net maintained online services and game servers for the Dreamcast until Sega ceased operation of the online servers forPhantasy Star Online, along with itsGameCube port, on March 31, 2007.[244]
SegaNet was an Internet service fordial-up-basedonline gaming on the Dreamcast in the United States. The service was created by Sega in collaboration withGTE through its GTE Internetworking division,[245] later renamedGenuity.[246] Sega announced a partnership withAT&T on August 4, 1999, making theAT&T WorldNet service the preferred ISP for Dreamcast in the United States,[247][248][249][250] and an agreement makingExcite@Home as the exclusive portal partner for SegaNet.[251][252][253]Microsoft participated somewhat in the development of the service, but they terminated their relationship with Sega just a few months before its launch over differences in its direction.[254] SegaNet launched on September 7, 2000,[255] and originally offered a rebate for a free Dreamcast and keyboard with a two-year contract.[256][257] Because of the Dreamcast's discontinuation, Sega announced they would discontinue the service on July 20, 2001, less than 11 months after launch.[258] Online support for Dreamcast games via SegaNet continued until 2003.[259]
Dreamarena was a freedial-up-based online gaming service provided for Dreamcast consoles in Europe, launching with the debut of the Dreamcast in Europe on October 14, 1999.[260] The service was created and operated for Sega Europe by a partnership betweenICL,BT and variousISPs.[260][261] The service was accessed via the DreamKey browser, which was also built into some games such asSonic Adventure 2.[262] After the discontinuation of the Dreamcast, Sega closed Dreamarena on February 28, 2002.[263]
In December 1999,Next Generation rated the Dreamcast four out of five, writing: "If you want the most powerful system available now, showcasing the best graphics at a reasonable price, this system is for you." However,Next Generation gave its future prognosis three out of five, noting that Sony and Nintendo were both due to release more powerful consoles.[264] At the beginning of 2000, fiveElectronic Gaming Monthly reviewers scored the Dreamcast 8.5, 8.5, 8.5, 8.0, and 9.0 out of 10.[265] In 2001, theElectronic Gaming Monthly reviewers scored it 9.0, 9.0, 9.0, 9.0, and 9.5 out of 10.[266]BusinessWeek named the Dreamcast one of the best products of 1999.[267]
Reasons cited for the failure of the Dreamcast include consumer excitement for the PS2;[61][223][268] a lack of support from EA andSquaresoft, the most popular third parties in the US and Japan respectively;[152] disagreement among executives over Sega's future, and Okawa's lack of commitment to the product;[19] Sega's lack of advertising money, with Bellfield doubting that Sega spent even "half" the $100 million it had pledged to promote the Dreamcast in the US;[29][269] that the market was not ready for online gaming;[130][152] Sega's focus on "hardcore" gamers over mainstream consumers;[61][130] poor timing;[29] and damage to Sega's reputation caused by its several poorly supported previous platforms.[152][270][271] InGamePro, Blake Snow wrote of "the much beloved [Dreamcast] launched years ahead of the competition but ultimately struggled to shed the negative reputation [Sega] had gained during the Saturn, Sega 32X, andSega CD days. As a result, casual gamers and jaded third-party developers doubted Sega's ability to deliver."[270]
Eurogamer's Dan Whitehead noted that consumers' "wait-and-see" approach, and the lack of support from EA, were symptoms rather the cause of Sega's decline. He concluded that "Sega's misadventures during the 1990s had left both gamers and publishers wary of any new platform bearing its name".[223] According to1Up.com's Jeremy Parish, it would be intellectually dishonest to blame Sony for "killing the Dreamcast by overselling the PS2", as Sega's lack of support for previous consoles had made customers hesitant to purchase Dreamcasts.[61]
In 2009,IGN named the Dreamcast the eighth-greatest video game console, praising its software and innovations, including its online play.[39] In 2010,PC Magazine's Jeffrey L. Wilson named the Dreamcast the greatest console and said that it was "gone too soon".[272] In 2013,Edge named the Dreamcast the tenth-best console of the last 20 years, highlighting innovations including in-game voice chat,downloadable content, and second-screen technology through the use of VMUs.Edge wrote that "Sega's console was undoubtedly ahead of its time, and it suffered at retail for that reason... [b]ut its influence can still be felt today."[151] Dan Whitehead ofEurogamer likened the Dreamcast to "a small, square, white plasticJFK. A progressive force in some ways, perhaps misguided in others, but nevertheless a promising life cut tragically short by dark shadowy forces, spawning complex conspiracy theories that endure to this day." He wrote that its short lifespan "may have sealed its reputation as one of the greatest consoles ever", as "nothing builds a cult like a tragic demise".[223] According toIGN's Travis Fahs, "Many hardware manufacturers have come and gone, but it's unlikely any will go out with half as much class as Sega."[4]
If ever a system deserved to succeed, it was Dreamcast. Dreamcast has a hell of a library. It's dying now, 18 months old, with a larger library than the 5-year-old Nintendo 64. It's a better library than the Nintendo 64. Dreamcast was a wonderful system.
The Dreamcast's game library was celebrated.[270] In January 2000, three months after the Dreamcast's North American launch,Electronic Gaming Monthly wrote that "withtriple-A stuff likeSoul Calibur,NBA 2K, and soonCrazy Taxi to kick around, we figure you're happy you took the 128-bit plunge".[274] In a retrospective,PC Magazine's Jeffrey L. Wilson referred to Dreamcast's "killer library" and said that Sega's creative influence and visual innovation had been at its peak.[272] The staff ofEdge agreed with this assessment of Dreamcast games, including Sega's arcade conversions, stating that the system "delivered the first games that could meaningfully be described as arcade perfect".[151] Damien McFerran ofRetro Gamer praised Dreamcast's NAOMI arcade ports, and wrote: "The thrill of playingCrazy Taxi in the arcade knowing full well that a pixel-perfect conversion (and not some cut-down port) was set to arrive on the Dreamcast is an experience gamers are unlikely to witness again."[28]
Nick Montfort and Mia Consalvo, writing inLoading... The Journal of the Canadian Game Studies Association, argued that "the Dreamcast hosted a remarkable amount of video game development that went beyond the odd and unusual and is interesting when considered asavant-garde ... It is hard to imagine a commercial console game expressing strong resistance to the commodity perspective and to the view that game production is commerce. But even when it comes to resisting commercialization, it is arguable that Dreamcast games came closer to expressing this attitude than any other console games have."[168]1Up.com's Jeremy Parish favorably compared Sega's Dreamcast output, which included some of "the most varied, creative, and fun [games] the company had ever produced", with its "enervated" status as a third-party.[61] Fahs noted, "The Dreamcast's life was fleeting, but it was saturated with memorable titles, most of which were completely new properties."[19] According to authorSteven L. Kent, "FromSonic Adventure andShenmue toSpace Channel 5 andSeaman, Dreamcast delivered and delivered and delivered."[275]
Some journalists have compared the demise of the Dreamcast with changing trends in the video game industry. In1001 Video Games You Must Play Before You Die, Duncan Harris wrote: "One of the reasons that older gamers mourned the loss of the Dreamcast was that it signaled the demise of arcade gaming culture ... Sega's console gave hope that things were not about to change for the worse and that the tenets of fast fun and bright, attractive graphics were not about to sink into a brown and green bog of realistic war games."[276] Jeremy Parish, writing forUSgamer, contrasted the Dreamcast's diverse library with the "suffocating sense of conservatism" that pervaded the gaming industry in the following decade.[277] According to Sega's head of product implementation, Tadashi Takezaki, the Dreamcast would have been Sega's last video game console no matter how it sold because of the changes in the market and the rise of PCs. He praised the Dreamcast for its features, saying in 2013, "The seeds we sowed with the Dreamcast are finally bearing fruit at this point in time. In some ways, we were going by the seat of our pants, but it was part of the Sega credo at the time — if it's fun, then go for it."[278]
The Dreamcast remains popular in the video gamehomebrew community. By 2014,unlicensed Dreamcast games formatted forMIL-CD, a multimedia-enhanced format developed by Sega and supported by the Dreamcast, continued to be released.[182] After Sega shut down the official Dreamcast servers, hobbyists developedprivate servers to allow games such asPhantasy Star Online to continue being played online.[279][280] Hobbyists have restored online functions for 40 Dreamcast games as of 2025.[281]
... all [figures] fromCESAwhite paper.
Sega of America Inc. (SOA) Monday announced thatShoichiro Irimajiri has been appointed chairman and chief executive officer. In addition, Sega announced that Bernard Stolar, previously of Sony Computer Entertainment America, has joined the company as executive vice president, responsible for product development and third-party business ... Sega also announced that Hayao Nakayama and David Rosen have resigned as chairman and co-chairman of Sega of America, respectively.
Unfortunately, if you have the Japanese DC light gun,Confidential Mission will only work with US third party light guns.
I consider it the best and most original puzzle game sinceTetris.cf.Nutt, Christian (December 13, 1999)."ChuChu Rocket! Review".GameSpot. Archived fromthe original on September 15, 2009. RetrievedOctober 4, 2014.
Certainly, by today's standards, it was rudimentary and repetitive. But at the same time, it was revolutionary.cf."Retrospective:Phantasy Star Online".Edge. June 15, 2014. Archived fromthe original on November 29, 2014. RetrievedMarch 5, 2015.
Madden has become a deeper simulation, but it hasn't evolved to the degree that Sega's title has.ESPN NFL Football is jam-packed with new features, innovative ideas, and must-see elements. First-person football sounds like a nightmare, but Sega figured out a way to make it work.
A collection of creative, fun, and quirky games that you'd be hard-pressed to find in such abundance on any other platform.
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