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Sega to Shifts Focus To Software
Manjit writes "Saw this Reuters story on yahoo. After reporting financial losses, Sega is announcing that they will be licensing the Dreamcast hardware design and shift their focus to software development. The interesting thing is the line about "including plans to provide game software for rival makers' consoles." Now that Sega will move away from the hardware business, we will be back to 3 major console makers this time next year, and the PS2 will have had a one year headstart. It does not bode well for Indrema trying to break into the console business."
Every company that ever did a shift from hardware to software either got eaten, died or is on life support:
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"Where, where is the town? Now, it's nothing but flowers!"
... will be Pong.
Okay, that's a little smart-alecky, but really, all it takes is One Good Game, and people will buy the Indrema to play it. Think of all the people who went out and dropped $2K on a computer back in the early 90s to play Doom (they claimed it was for "working at home and stuff, mostly for the kids to learn about computers", but it was Dad blasting demons to bits at 2am).
One good game. The N64 has been riding the wave of GoldenEye and (now) Perfect Dark for a long time now. Without those two games (and of course Mario and Zelda), the N64 would be a paperweight.
One good game. Not a port or a repeat or a clone, but a True-Blue Killer App. With the Indrema being open, it has a good chance to do it, two.
Potato chips are a by-yourself food.
All the conclusions drawn aren't really correct.
This info has been floating around for quite a while... more importantly sega has already admitted to working on another console internally.
So don't think the dreamcast is sega's last box. It may be the last box they build exclusively by themselves but they are way too far ahead in the arcade realm to stop building hardware.
--- I do not moderate.
I'll believe it when I see it, because I've heard all these lines about a million times before.
Ita erat quando hic adveni.
It is only safe to say they're interested in the software business. After all that will make Sony the loss leader since it is depending on the hardware sales to drive the software sales. Sega on the otherhand makes the games and the hardware, so they're now saying they won't screw with loosing on the hardware when they can make a killing on the software.
Smart move if you ask me. I could care less how many consoles are out there. I just love the games they produce and master.
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...about going to work for the competition.
-- He's fantastic, made of plastic....
The amount of misinformation floating around about Sega these days is amazing. First people report that Nintendo and Sega are teaming up and now this. Let me set the story straight: A few months ago at a press conference Sega if Japan's president Isao Okawa made a statement vaguely claiming that Sega would be moving out of the hardware business. When asked about this, Sega of America's Peter Moore stated that it was a misunderstanding and that Sega indeed plans to continue making hardware. The rumors of Dreamcast being Sega's final machine died down. Now, in lieu of Sega's financial situation, they have issued a statement saying that they will "diversify" and close up their unprofitable business (i.e. arcades). I've read the press release that is cited in the Yahoo story and at no point does it say that Sega will make games for Nintendo, Sony, or Microsoft's system. This is simply a case of poor journalism and spin-doctoring. Go read the Sega's statement at SegaDojo.