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'The Rise and Stall of the SEGA Dreamcast'
"A real look at the issues facing Sega's system in the wake of PS2"
-by Fabian Blache III

It was March 9, 1999 and I was deep into my first edition of the short-lived Gaming Age column "Dreamcaster" when I crafted what was sure to be one of the most controversial, hate-mail driven dissertations the multi-platform gaming site had ever seen. Once the beloved of the Gaming Age staff, I quickly descended into the realm of the blasphemous and misguided. Why? Because I had dared taken the extreme liberty of commenting on the forthcoming launch of the SEGA Dreamcast in anything but a purely positive light!

Now here is the real deal. All I really had done was talk about things that had been released about the system's details and the like. Since I owned a Japanese model, as I was reviewing import titles for dreamcast.ign.com, I was in a firm position to make some valid and valued judgments of what U.S. gamers could expect from SEGA'S new unit. While my comments, particularly, about the controller were surely not the best of remarks; overall, my commentary on the system was favorable-albeit a bit jaded on certain looming issues. Let's face it, during the time that the majority of the pre-launch press was hitting its full-steam pace, SEGA was struggling financially.

In light of these highly publicized financial woes, I talked about what kind of impact a failure to turn things around would ultimately have on the beleaguered gaming entity. I also talked about the fact that I found the system aesthetically gorgeous and well laid out. I praised the simplicity of its design and the small footprint of its size. There were many notable aspects of the system. Simply put, the unit was certainly a turnaround from the Saturn debacle of old.

I further praised the outstanding soundboard from Yamaha and the very impressive capabilities of its visual output. Conversely, I talked about my alarm at hearing about SEGA of Japan president Shoichiro Irimajiri speaking to a group of Hiyoshi university students about home-business machines, and his mention that SEGA had plans to incorporate DVD into the Dreamcast in the future. This was a serious thing to watch, as that would have meant that early adopters would not have DVD and late adopters would. This reeked heavily of SEGA Genesis add-on mania, and was certainly cause for concern.

Yet, despite all of this, SEGA came in with a great price point at $199.00 for their much ballyhooed 9.9.99 American release date. Interestingly enough, that date was exactly five years to the date of the American SONY PlayStation launch. Furthermore, judging by the titles they had planned for the launch, which included NFL Football and NBA Basketball titles, in addition to Sonic Adventure, Virtua Fighter 3, House Of The Dead 2, Super Speed Racing, SEGA Rally 2 Soul Calibur and PowerStone, SEGA was certainly telling its consumer base that it was serious about the American market and the future of their flagship system.

At this point in my examination of the Dreamcast, my optimism had increased to a point. But that was exactly where I had gone wrong with my readers. No matter what SEGA had done, to soften my initial stance on their effort to develop a viable game console for the Japanese, European and American markets, I stood firm, on my humble opinion, that SEGA, a dynamic software developer, manufacturer and publisher, should abandon the hardware wars, posthaste, once and for all, to pursue a (guaranteed) profitable position as a mulit-platform software developer. The horror. The shame. The nerve. Who the hell does this guy think he is? Well.you get the point.

I was quickly the laughing stock of my domain-at least to the staunch SEGA loyalists that read every word with stomach churning trepidation and disdain for the very air I breathed. People actually expressed severe and heartfelt "hate" for me. They felt I was a useless piece of shit that knew nothing of what I spoke. I got hate-mail every day for weeks on end. All tolled I received over 300 pieces of disparaging mail. I was even asked to step down from my post. Not by the Gaming Age staffers, not at all, but by the readership. I was now an outcast.

In fact, the damage was so bad, just from my simple comments saying that I felt SEGA would make money and become profitable, once again, if they simply chose to do what they did best-develop great software-that the new EIC of the site stepped in and suggested that maybe others editors should write for "Dreamcaster" from time-to-time; which only lasted through five iterations. With my feelings completely un-hurt (mind you), I suggested that they do what they wanted with the column. My contention was that if I could not be true to my own beliefs, for the sake of some maniacal SEGA fanatics, I did not want to write the damn thing at all.

JUMP TO 2000

Most of my thoughts about the subject of the SEGA Dreamcast had really left my mind for some time. While I possessed two of the systems, to facilitate writing reviews for which I was paid a decent fee, there weren't many games that impressed me in the same way some other titles had over the years. That doesn't mean there weren't any. Rayman was terrific, as was Resident Evil: Code Veronica and Seaman-in all his annoying and unnerving glory. NFL2K1 was a very nice football game, and the highlight of the system's existence to this point has been Virtua Tennis; a game expected to sell so few units that they did not produce enough to meet the swelling demand.

Month-to-month, in my many conversations with professional gamers and non-pros alike, I could frequently be caught exclaiming my opinion that SEGA should truly give up on hardware and go and make some real, tangible cash as the Software for Everyone Gaming Authority (SEGA). Hey.the name SEGA originates from Service Games anyway, so I am just jokingly putting a new spin on the concept. If the company were to have been a real-deal gaming system company, then perhaps they would have been called Service Games Systems or SEGASYS. Anyway, I have digressed here.

My point is this, SEGA has proven woefully inept at managing the console game, ever since the 32X debacle and the SEGA CD. Then it was later the Saturn embarrassment and now Dreamcast is teetering on the brink of suicide. Sure the Dreamcast is a much better effort, but developers that promised support for the system are disembarking at a steady pace and the companies financial woes, the ones I spoke of which led to conclude they should only develop software have just gotten much worse. Well actually they have always been this bad, it was just not publicized. But here goes.

In a recent report, out of Japan, dated November 1, 2000, SEGA has announced that they will look at developing their marquee software titles for other gaming platforms, inclusive of SONY's PlayStation and Nintendo's GameBoy systems. This paradigm shift comes a day late and many dollars short, as this is SEGA'S way of sliding into a position that can earn them some much needed capital. Why this change all of a sudden one may ask? Here is the answer. SEGA'S financial prospectus for the Dreamcast's earnings potential called for $1.5 million Net profit for the first half of 2000. The company, reluctantly, has actually posted a $22.1 million Net loss. Business journalists have actually been quoted as saying that "someone in accounting should be fired.". This is an appalling scenario that SEGA finds itself amidst. One that, had they listened to the likes of silly 'ole me, they would not have found themselves in.

People may have thought I was nuts, but they thought the same thing when I stymied Howard Lincoln and Peter Main on the issue of the 64DD in Atlanta at E3 in 1998. Yet every word I uttered, in pure speculation, based solely upon trending and the facts at that time has come to pass. Now I'm not a genius or true-blue expert. But it seems simple to do the basic math and determine the right path-so long as you are calculating the numbers and not the amount of testosterone in your engineering departments.

COMPETITION BREEDS COMPETITION Stepping back, long enough to take a real look at the issues facing Sega's system in the wake of PS2, what once was the dawning of a new gaming age is now upon us. While the PS2 launch has been plagued with more hiccups than SONY could ever have expected, these days will prove a trying time for Sega as well.

It is clear that they (SONY and SEGA) will be most likely be marketing to users that enjoy more than one game console at a time in their home, but companies like to view these users as "theirs" and will approach the left and right sides of their brains accordingly different. You can expect to see more of the MTV style advertising that SONY has mastered and more of the cerebrally challenging stuff Sega has concocted to pique one's interest. The SEGA war chest may be all but depleted at this point. There may just be enough money in there to purchase pink slips for the staff. But, assuming that there will be one last surge of effort from SEGA, what will be the impetus of their campaigns? What will be "the shot"?

Currently, it is undeniable that, in 1999, Sega briefly enjoyed the most successful launch of any system in the history of gaming. Now those honors belong to SONY-this despite the current lack of availability. SONY moved every bit of 500,000 units in one day, as compared to SEGA'S claim of 300,000 sold in a weekend. However, the real issue lies a bit deeper. SEGA has sold around 5.7 million units worldwide. They claim they have a plan to sell the same number of units in the next several months. This is highly unlikely in light of the fact that it took over a year to sell as many as they have. Conversely, had SONY been able to produce 5 million units before Christmas, it is likely that they could have moved every one of them by no later than post holiday-say sometime around the end of March. With that kind of momentum, the PS2's potential is certainly not being realize to the fullest in light of the unfortunate shortages. But, obviously, SEGA is waking up the reality of their grim situation. Which is exactly why they are now looking to do just what I was ostracized for over one year ago. They are actively seeking to become a multi-platform software developer. Moreover, if they make this much needed transition, you will certainly see their stock prices climb upward, from the current all time low of 711 Yen. That's right. Their stock has hit its lowest point in the company's history. When you consider the incredible games they have pioneered over the years, it is very disheartening to see them in this position.

With all of this looming on the horizon, the focus for Sega must be on quality titles that have these three critical components in place: (1) entertaining gameplay; (2) progressive gaming innovations and (3) refined graphics. Porting titles is not for the faint of heart. If SEGA takes on this new challenge, they will have to address how to make games, built to work flawlessly on SEGA-based arcade boards, work on consoles that have their own arcade presences. These strides will become a key focus as they are forced to battle the advances that SONY's system will offer and that GameBoy and down the road GameCube will offer.

Let's face the truth. The average Joe is going to be wowed and lulled into newer gaming experiences by things like box art, graphics and brand affiliation. Amidst that group are some of the more discerning gamers, yet still principally influenced by the aforementioned factors. With that in mind, any company would be sorely remiss if they did not market their titles by bringing to market their technological advances in those areas. We see it everyday. Sequels are rampant with the stuff; laced with phrases like: "Improved graphics engine" or "Improved control mechanics" or "Higher polygon count models" and such.

If these things are the impetus for developers to remain innovative-this besides assuring that their respective companies are not left behind in the growth-curve-one can easily understand why comparisons are immediately drawn to comparing things like polygon pushing capabilities; clock-speeds; read rates; RAM and other mitigating factors-when assessing the viability of a fledgling game system or format.

There are still some today, not given to levying all "kind" words at Sega's new system. Many still feel that the off-the-shelf manner-in which Dreamcast was birthed-will also be the death of the system. Now I don't actually mean D.O.A. death but, more euphemistically, a serious detracting factor to its longevity. One would, however, have to look towards evidence to support such an inflammatory statement. And there are things to support dual arguments.

On the one hand we have Soul Calibur; which is simply exquisite. Then there is the recently released Dead or Alive, which has dethroned Virtua Fighter 3 once and for all. Then there are the incredibly fluid NFL2K1 and NBA2K1s of the world, which have awestruck many a veteran gamer-with their smooth frame rates, impeccable animation and immersive gameplay. These titles are testament to the Dreamcast's graphics prowess and the ability of some developers to capitalize on what is contained within "the little pale box that could."

However, SEGA must then contend with lackluster efforts like Quarterback Club 2001, Soul Fighter, and Tomb Raider: The Last Revelation. These titles exhibit gameplay and graphical issues that may explain why some developers are giving up on the system. Add to this the fact that early anticipated launch titles like Rainbow Six's launch date slipped and slipped, and one begins to wonder just how easy the Dreamcast is to program for-or port to-for lesser developers? Is the kludge of product, contained within, an accessorial culprit in this dilema? Then again, wasn't the first PlayStation plagued by similar lackluster releases-despite being a more proprietary design?

These questions and debates can rage on and on but, one thing is clear, on the horizon stands a behemoth company in that of SONY. PlayStation 2's parents "SONY.No Balogn(e)".(remember that?) have the ominous monolith in that of PS2 on-site in the U.S. making a serious PlayStation curtain call. Just as the Old Grey Mare (PlayStation 1) shakes its last leg, the Big Black Monolith (PS2) emerges from the Earth like a phallic call to power. (I will catch hell for that one.) The colors of PS2, which are Black and Blue, are said to represent the Earth and the Ocean.

Does this mean that with SONY's move from the PS1's 90's techno-babble, to the more 60's Mother Nature overtones, that the new grated, heat-synced looking façade of PS2 is a hint that the system is Groovy? Sorry, couldn't pass that one up either. But you get my point. We are seeing a paradigm shift here, in terms of SONY seemingly feeling that technology and innovation, which will always move at a break-neck pace, need to be balanced by more traditional (analog "not digital") thinking!

PlayStation 2 has eclipsed all systems before it with the quintessential gaming launch. It has already attained firm status in Japan, despite the early hiccups and recalls. But there are already those who infer that PlayStation 2 is only marginally better, from a graphical perspective, than the Dreamcast. Personally, I find that rather hard to fathom. Yet, I cannot attest to being the most technologically inclined gaming mind, so I will leave the realities of that argument to those better prepared than I (Gecko, where are you?).

A year ago, I said that from a psuedo-layman's perspective, there is no way in hell anyone could have convinced me that, a year into 2nd generation game development, the PS2 wouldn't be spankin' the Dreamcast visually. I just could buy into all of the Dreamcast hyperbole. Actually, I was hard-pressed to believe that the PS2 wouldn't smoke the Dreamcast right from the jump. Guess what? I was right again. I know it sounds boisterous, but I right was damnit!

So, does this mean that people shouldn't continue to enjoy their Dreamcast? Hellz no! So long as there are entertaining game titles for the system, play hard. Things are a tad slow now, in terms of quality Dreamcast title development, but maybe it'll get better. The real question is, "Just how much better must it get?" for the Dreamcast, before the PS2 starts some Soul Reaving of its own? Can the PS2 obliterate the progress Sega has already made with the system? Yes. Could the Dreamcast become a vacuous "has-been" in the shadow of SONY's system? Perhaps. Does Sega have some real issues to address? Damn Skippy!

If I were the head of SEGA, watching my head (as a person of Japanese decent) would become my number one priority. With $22.1 million in losses posted, I would turn that company upside-down if I had to, just to make certain that the bleeding stopped and fast! In the meantime, let's all hope that there is enough life left to allow SEGA to make the transition, so that all PlayStation owners can begin to benefit from the likes of Visual Concepts and Sega developed game titles in their homes. I have waited for this a long time. I am only sad to see it took so damn long. Good luck SEGA. Good luck indeed.

- editorial contributed by Fabian Blache III


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