Sega has recently taken the decision to restructure its business by moving away from the hardware production market and concentrate primarily on software. Sega will be selling software to Sony and Nintendo, its previous rivals, and also potentially to Microsoft for the company’s new Xbox console due for release later this year.
The troubled console has suffered from slow sales since its release in September 1999 and has already had its price discounted. The Sega Corporation has posted financial losses for the last 3 years and has only managed to sell 2.32 million units of Dreamcast hardware in the April-December period, down 44% from its initial forecast.
Dreamcast production ends in March this year however Sega have announced they will still release software for the console for the immediate future.
The price cut, bringing the cost of the console down from $149 to $99 in the US will be effective from the end of this week. Reductions in Japan will begin in March.
See also:
Sega confirms the demise of Dreamcast, OUT-LAW News, 01/02/2001
Sega could give up on Dreamcast and work for rivals, OUT-LAW News, 24/01/2001