Press release: 2000-08-31: Sega Makes Bold, Strategic Moves for Fall 2000 and Beyond

This is an unaltered copy of a press release, for use as a primary source on Sega Retro. Please do not edit the contents below. Language: English Original source: The Free Library

SAN FRANCISCO--(BUSINESS WIRE)--Aug. 31, 2000

Unveiling of New $149 Price Point, Impending Launch of Online Console Gaming, and New Online Dreamcast Games Bolster Sega's Future Plans

Sega(R) today revealed details of their strategy to pioneer and proliferate online console gaming. The three point strategy includes: a new manufacturers suggested retail price for the Sega Dreamcast(TM) videogame console, plus details of the launch of SegaNet, the only high-speed console gaming network and ISP, and confirmation of the imminent arrival of the first console online multiplayer games, "Sega Sports(TM) NFL 2K1" and "Quake III Arena(TM)."

Sega has announced a new MSRP of $149.95 for their 128-bit, Internet-ready, Sega Dreamcast videogame console. The new price point becomes effective on August 31 throughout the United States and Canada ($229.95 CND). Sega believes that the new price, along with the industry's most widely-acclaimed title lineup and the impending launch of SegaNet(TM), the only high-speed gaming network, will take Dreamcast to a wider audience. As such, the company is well-positioned to meet its goal of having an installed base of 5 million in North America by March 2001.

The new suggested price of $149.95, when combined with the SegaNet rebate program, effective at launch on September 7, effectively ushers in a new era of online console gaming by removing any barriers for the consumer to experience the first true console online content. Consumers need only buy a newly-priced Dreamcast, log-on and will be eligible to receive 50 free hours of online service on SegaNet as an opportunity to experience the thrill of online console gaming.

If consumers wish they can sign-up for 18 months to the SegaNet network and ISP at $21.95 a months and receive an additional $150 rebate and a Dreamcast keyboard.

Gamers will also be able to participate in incredible online games, which Sega will be rolling out every few weeks, including "Sega Sports NFL2K1," "Quake 3 Arena," "Sega Sports NBA 2K1" and "Phantasy Star Online(TM)."

"The new suggested price of $149, the free 50 hours use of SegaNet for every Dreamcast game console along with the SegaNet rebate are just the latest steps Sega has taken to provide a myriad of benefits to consumers," said Peter Moore, president and COO of Sega of America Dreamcast. "We are confident that our combination of great hardware, unsurpassed title lineup and the industry's first-ever online console gaming network will prove irresistible to consumers -- especially those who may be frustrated by the lack of availability of other game systems this fall. Sega is in a great position now to extend to a much wider audience, and continue to be an innovative and dynamic force in the videogame industry."

"With the announcement of the new suggested price of $149 and the upcoming launch of SegaNet, Sega is sure to enjoy a great holiday season and beyond, "said Peter Roithmayr, vice president of merchandising/videogames, Electronics Boutique. "Sega is bringing an additional level of choice to the category that will benefit consumers and the industry alike."

Likewise, Sega has received enthusiastic response from third-party publishers who laud the company's innovative leadership within the industry, and the new market opportunities afforded by online console gaming. "The bold moves Sega has made in the past few months -- from the strategic focus on online gaming to aggressive pricing to smart marketing -- gave us total confidence in publishing for Dreamcast. We are excited to be part of Sega's plans for the future," said Mike Ribero, executive vice president, Midway Games.

Third-party publishers who are developing for online are bullish on Sega's new online strategy. "Sega has pioneered the concept of online console gaming, which we think is going to open the floodgates to a whole new consumer marketplace," said Holly Newman, executive vice president of publishing for Crave Entertainment. "We will be working with Sega to maximize this exciting new market opportunity, with products like Starlancer, the first and only first-person, online multiplayer space combat game for Sega Dreamcast, and with multiplayer Tetris, a perennial favorite among the casual gamer."

Industry analysts are keeping an eager eye on online gaming since the category is poised for rapid and dramatic growth. According to a recent Forrester report, online gaming, which currently represents 2% of the market, is expected to comprise 24% of video game market revenue by the year 2002. Many analysts are bullish on the category, as well as Sega's bold, first-mover stake in online console gaming.

Since it's introduction a year ago -- Dreamcast launched on September 9, 1999 -- the system has met with critical acclaim and record-breaking sales success, more than doubling sales within the first two months of launch. Additionally, Sega's title line-up was roundly heralded as the strongest and most inventive in the industry at this year's Electronic Entertainment Expo (E3). As a result, Sega's market share has catapulted from less than one percent in 1999 to 20% currently, according to (NPD).

About Sega Dreamcast

The 128-bit Internet ready Sega Dreamcast is available in the U.S. with a built-in 56K modem, allowing for full Internet functionality via SegaNet, the only high-speed online console gaming network and ISP service for Dreamcast and PC users. Dreamcast currently has over 100 titles available. The total Dreamcast game library count will be more than 200 by December 2000.

About Sega

Sega of America is the American arm of Tokyo, Japan-based Sega Enterprises, Ltd. responsible for the development, marketing and distribution of Sega videogame systems and videogames in the Americas. Sega Enterprises, Ltd. is a nearly $2.5 billion company recognized as the industry leader in interactive digital entertainment media, offering interactive entertainment experiences both inside and outside the home. Sega of America's World Wide Web site is located at www.sega.com.

About Sega.com and SegaNet

Sega.com, Inc.(TM) is a new online entertainment company whose goal is to become the online destination for gamers. Sega.com integrates SegaNet(TM), the only high-speed online console gaming network providing Dreamcast users with the ultimate in speed, reliability and content. SegaNet offers gamers the best in 3D multi-player games, chat, community, cheat codes, tournaments and content. SegaNet is also an ISP for Sega Dreamcast and PC users, offering gamers everything they need to know about gaming.

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