| The long, hot summer
_files/P-IsaoOkawa.jpg) After he assumed the helm of Sega of
America, a self-assured Peter Moore made the long trip to Japan to see his
new masters. His boss, Sega CEO Isao Okawa, wasted no time in
letting him know just how precarious the stakes were. While the full
scope of everything that was said between the two is not and will probably
never be known (due to non-disclosure agreements), two important facts
have come to light about what happened during that meeting. Moore
left Japan with US$500 million in his pocket for Sega of America and a
firm command from Okawa: Make the Dreamcast a success in North
America ... or else. "Or else what?" the uniformed might ask.
"Did this mean Okawa was going to can Moore if he couldn't pull off the
Dreamcast gamble, given that the odds were as long as they were?"
No, not at all; in fact, quite the contrary. Okawa had given Moore
what amounted to Sega's last cash reserves. The Dreamcast had bombed
in Japan and was, in Okawa's opinion, not doing well in every other
worldwide market save one. Dreamcast had proven to be a bigger than
expected success in the United States and was, by any reasonable estimate,
poised to take the #2 spot on the market away from Nintendo by Christmas
2001. If there was any hope at all that Okawa could pull off the
Dreamcast gamble, his best bet was North America - where the odds were the
shortest and the market most favorable to his designs. If he
succeeded, then Sega could stay in the console business for at least
another year, clean out its hardware back inventories, and be in a better
position to remake the company once the time came. If not ... well,
at least Sega would beyond all doubt have its much-soiled reputation back
in the one market that really mattered. Moore's job was not on the
line and he knew that. It was the very existence of Sega itself that
was at stake. The year 2000 would have to be "the year of the
Dreamcast" insofar as the United States videogame market was
concerned. Sega would not be able to survive if it wasn't.
Armed with this knowledge and the last of Sega's cash reserves, a
determined Peter Moore went back home, faced with the daunting task of
single-handedly saving Sega before all was lost.
_files/P-JFCecillion.gif) Over in the Old World, Sega of Europe was
not waiting around for orders from above. It knew the situation as
well as anybody; besides, as the last of Sega's major markets to roll out
the Dreamcast, it was constantly winding up on the tail end of directives
from Japan. Not this time. Sega of Europe president Katsutoshi
Miyake conferred with COO J.F. Cecilion and his staff as to how to start
pushing Dreamcast sales. Thus, credit goes to Sega of Europe for
leading the way in dropping the price of the console. On 31 May
2000, Sega of Europe dropped the price of the base Dreamcast console to
£150 for ten days during the British Bank Holiday. Although the move
was only a temporary one, it was welcomed by the markets and sales surged
as a result. On 12 June 2001, Sega of Europe kicked off a US$8
million advertising campaign based around the theme of international
competition, as various representatives of the European Common Market
battled it out for bragging rights as to who could both make and play the
best Dreamcast games. It aggressively pushed its Dreamcast lineup for all
it was worth, including the just-arrived megahit Resident Evil - CODE:
Veronica. While European software sales figures as a whole were
paltry when compared with the Japanese and American markets, Sega of
Europe pushed them as hard as they could for all they were worth. CODE:
Veronica, as it had elsewhere, rose to the #1 spot on the charts and
brought along other Dreamcast titles, such as MDK 2 and Zombie
Revenge, along for the ride. It was a daring move given the
financial woes that Europe's software development community were suffering
at the time, but Sega of Europe really had nothing to lose. They
were out of the loop insofar as the big decisions at Sega were concerned,
so they were pretty much free to try anything.
Sega of Europe's devil-may-care
advertising attitude was not without its consequences, though, and
manifested itself in a rather unexpected and inconvienent manner. On
22 June 2000 the Independent Television Commission (ITC) of Great Britian
pulled the plug on one of Sega UK's Dreamcast television commercials for
its popular sports sim Sega Worldwide Soccer 2000 Euro
Edition. They had been deliberately designed to tap into the
nationalistic fervor surronding the Euro 2000 football (soccer)
championships, and it was feared by the ITC that Sega UK's in-your-face
advertising would help promote more than the usual fan violence at the
event. Here's how SegaWeb reported the
incident:
_files/AD-SoE_Euro2000_German(Q2-2000).jpg) _files/AD-SoE_Euro2000_Brit(Q2-2000).jpg) The entire campaign is quite stereotypical
in nature .... In fact, they take xenophobia - not the cool arcade game
- to a new low. We will show the ads here for illustrative
purposes from which you can draw your own conclusions. The
particular ad in question showed a German in a pronounced mullet
stating, "Come and have a go if you think you're hard enough." The
Independent Television Commission decided to have the ad pulled on
Friday, a day before a grudge match between Germany and England in the
Euro 2000 soccer championship. The ITC issued a statement late
Friday, "The ITC believes the advertisement was calculated to tap into
the current nationalistic fervor surrounding Euro 2000. There is
considerable public concern about violence breaking out during this
championship. In this climate we consider the provocation implied in the
advertisement to be ill-judged and irresponsible." "We took the
decision on Friday. What happened after Friday only served to show that
we have taken the right decision," the regulator told CVG [the
original source for the story - ed]. A ban of England has been
suggested by championship organizers in light of fan violence involving
English fans due to Saturday's match. The UK government is even
considering legislation meant to curb soccer violence ....
Currently, Sega has not voluntarily pulled any other advertisements in
the series and has until Wednesday to makes its case for the lifting of
a ban on the Dreamcast Online ad. Approximately one
month later, no less a figure than Sega of Europe COO J.F. Cecilion
himself would deny rumors that Sega had yet another such game in the
works. Memories of the stink over the Euro 2000 ad campaign,
perhaps? Perhaps, but that didn't stop him from inking an exclusive
contract with Virgin Games at the end of the month for distribution rights
to Sega's online-capable Dreamcast games. It needed all the help it
could get, too, because to put it in the words of one quip-throwing
industry reporter, "European Dreamcast sales just plain
suck." In the meantime,
though, a number of Sega's most important third-party houses in Europe
were suffering financially and seriously reconsidering their Dreamcast
commitments as a result. The French-based Infogrames, Europe's
largest software distributor, posted a net loss for fiscal year 1999 of
some US$320.7 million due to "... changes in internal management and
write-off of excess inventory." Eidos Interactive, creators of the
popular Tomb Raider franchise and one of the early Dreamcast
supporters, was buried under a mountain of debt, enduring both the
ignonimity of one buy-out offer after another and the unwelcome presence
of investigators from Her Majesty's government checking to see whether or
not Eidos executives had planted rumors of unprofitibility in order to
score some quick and easy stock profits (sound familiar, Atari
fans?). The troubles with Sega of Europe's third party support would
go on through the rest of the year, but they did result in one unexpected
and potentially beneifical side effect. Due to limited funds and the
cloud hanging over the console's future, a number of European-produced
Dreamcast software titles would not make it overseas. Thus, Sega of
Europe could proudly proclaim that it had its own Dreamcast market
exclusives, such as Sega Worldwide Soccer 2K1, Agartha, and
Headhunter and thereby give some of the more arrogant American
gamers "something to chew on."
Dreamcast's long, hot summer in America
did not get off to a very good start. Moore may have had the money
and the Okawa diktat, but he still had to contend with the fallout
from the console's end-of-spring slump. Internet gaming, one of the
lynchpins upon which the success of the console rested, was months behind
schedule and still slipping. The Dreamcast Network, which was
supposed to have launched in March, had been plagued by numerous technical
delays and would not be ready until the end of summer.
Frontier, the multiplayer space shooter that was supposed to have
launched the Dreamcast Network in the States, was quietly cancelled.
By the end of the summer it would also lose another high-profile title as
well: Baldur's Gate, Microsoft's multiplayer AD&D
RPG effort. Software imports from Japan were being delayed in
many cases due to their networking features, which in a few notable
instances were removed altogether in order to meet shipping
deadlines. While 63% of Internet gamers surveyed by PC Data
confirmed the Dreamcast as their choice for most popular online gaming
console, Dreamcast's online gaming potential was still just that.
Most industry analysts and reporters treated Sega.net's "free Dreamcast"
promotion for the joke that it eventually turned out to be. Far
fewer gamers than expected took advantage of the offer, and this was
blamed by the pundits on "a weak, ineffectual advertising campaign that is
simply not doing its job in promoting SegaNet." To be fair, it was hard to
advertise for a network that as of this date still had next to no content
for use besides its browers. U.S. Dreamcast gamers had Chu-Chu
Rocket to play but little else, and many were simply getting fed up
with having nothing but mice and cats with whom to interact online.
"So then, what do we have?" quipped SegaWeb's Eric Barzeski. "Sega
falling flat on its face as far as promotions. What else is
new?"
_files/DC-HalfLife(U)_box.jpg) _files/DC-UnrealTournament(U)_box.jpg) To his credit, Peter Moore and his new
staff at Sega of America tackled their problems head-on. The old
"It's Thinking" ad campaing which had gathered mostly jokes from hardcore
gamers was quickly ditched in favor of a new one - "Opponents Are
Everywhere." Moore and his staff constantly sang the praises of
Dreamcast's networking potential in public while constantly pressuring
their Japanese counterparts for network-capable hardware and software in
private. As far as the software was concerned, Moore wanted more
than Chu-Chu Rocket to give to Internet-hungry Dreamcast gamers,
and he got it. By the middle of June, all three of the world's best
first-person shooters - Quake III: Arena, Unreal Tournament, and
Half-Life were confirmed for release on the Dreamcast by the end of
2001. The entire Sega Sports lineup was going to have network play
added for multiple players, and both NFL 2K1 and NBA 2K1
would have it by fall 2000. For a while there during the early days
of summer 2000 it seemed that every other Dreamcast game Sega of America
was announcing would have online gameplay. In the meantime, Sega of
America worked quietly in the background in order to make sure that it
would meet its Dreamcast online gameplay goals this time, and by 8
August 2000 everything was in place for full-scale beta testing of the
system. It was late, but was going to happen after all, and both the
hardware and software would be in place to make Sega CEO Isao Okawa's
dream of Internet gaming a Stateside reality.
The glory that was Dreamcast's second
generation of games continued in its full splendor throughout the summer
of 2000. Aero Wings 2: Air Strike ... Bang! Gunship Elite
... D2 ... Deep Fighter: The Tsunami Offensive ... Draconus:
Cult of the Wyrm ... Hidden & Dangerous ... Jeremy
McGrath Supercross 2000 ... Namco Museum ... Project
Seaman ... Railroad Tycoon 2 ... Silver ... Tony
Hawk's Pro Skater ...Toy Story 2 ... Vanishing Point ...
WWF: Royal Rumble ... and more. In fact, several of the more
notable titles from Dreamcast's summer of 2000 release schedule deserve
special mention in and of themselves:
If most Dreamcast gamers were limited to
just one word in describing Ecco the Dophin: Defender of the
Future, the 128-bit remake of the old 16-bit Genesis classic, then
that word would have to be "WHOA!" Its quirky
and difficult controls may have survived the test of time, but
Ecco's graphics received a major overhaul during the porting
process. The dead-on-accurate realistic aquatic environments,
complete with bubbles, shadowning, and light and water effects, proved
so mesmerizing that many game shops would show the game in its demo loop
to tout the power of the Dreamcast. While there other more
playable Dreamcast games out there with graphics every bit as good, no
other title save Ecco managed to capture so perfectly just how
powerful the console's graphics capabilities could be in the hands of
skilled programmers. It remains to this day a testament to what
was the Dreamcast was ... and could have been.
Evolution 2: Far Off Promise
was the highly anticipated sequel to the quirky yet loveable little RPG
that Sega of America sneaked under the wire just in time for the 1999
holiday shopping season. It was just what the RPG crowd needed -
another good (if rather small) game to whet its appetite for the monster
Dreamcast RPG that UbiSoft was bringing Stateside at the end of
summer. Not much of a plot, as before, but the already impressive
graphics were souped up even more and certain features (standardized
dungeons) were added at the request of players of the first game.
It was nice to know that Sega's third parties, unlike those of
certain other consoles, actually listened to its customers and
did something about their inquiries.
Fur Fighters by UbiSoft was without a
doubt the oddest multiplayer shooter that Dreamcast gamers (or gamers of
any system, for that matter) had seen come down the pike in a long
time. In concept it was not all that far removed from the 16-bit
"furry fighting" game Brutal: Paws of Fury, itself a big hit for
Gametek back in the early 1990s. The whole idea of cute little
animals with really big guns blasting the crap out of each other scored
well with Sega's traditional demographic, young adult men, and Fur
Fighters proved to be one of the bigger Dreamcast games of the
summer. Not surprisingly, it also saw release on other platforms
shortly thereafter.
Arguably the first Dreamcast hit of summer
2000, Crave's perfect port of Tony Hawk's Pro Skater did for
extreme sports videogamers what CODE: Veronica had done for
horror-survival fanatics - it brought them en masse to Dreamcast.
The PlayStation original had been called the best skateboarding
videogame ever made up to that time; that is, until the graphically
superior Dreamcast version hit retail store shelves on the last day of
spring. It may not have offered any new gameplay features over its
Sony counterpart, but to play the world's best skateboarding game in
full 128-bit graphical glory was a tempting lure that few could pass
by. It remains to this day one of the select few Dreamcast titles
that by themselves caused gamers to buy the
console.
Wacky Races was one of the more
popular kart/rally racing games from Dreamcast's summer 2000
offerings. Based on a now-forgotten Hanna Barbara TV cartoon
series, it gave gamers the chance to compete in various types of
cartoon-inspired vehicles, with the requisite graphics and sound effects
from the show to boot. What few people realized was that Sega's
16-bit heritage was peeking around the corner once again in a game that
had once been slated for release (and actually coded in beta form)
during the last days of the good ol' Genesis. It was an excellent
game that not only added to Dreamcast' software arsenal but also gave
fitting tribute to its mighty 16-bit predecessor of
old.
The one game for which Sega Sports fans were
eagerly awaiting during summer of 2000 was the Dreamcast incarnation of
World Series Baseball. They just knew it was coming,
because it was the only major U.S. sport that Visual Concepts had not
yet touched. So it was that when the game was finally released in
August it was instantly snapped up by eager Dreamcast gamers across the
nation. It quickly earned the reputation of being the crappiest
sports game Sega Sports ever released for Dreamcast due to poor game
control, yet WSB 2K1 eventually proved to be one of the biggest
games Sega of America would have that season.
In contrast to the anticipation that built
up around the impending release of WSB 2K1, Sega's Virtua
Athlete came out of nowhere and had no welcoming committee.
Basically an upgraded remake of the old Saturn multievent sports game
Decathalete, Virtua Athlete was not slated for a U.S.
release had not Sega found an overeager and willing distributor in
Agetec. Virtual Athlete was not Sega sports programming at
its best; nevertheless, it helped round out the Dreamcast software
library on the sports end. Given that the Olympics took place the
same year and former Sega licensee Konami chose to do an about-face and
port its own multievent sports game to Dreamcast (Sydney 2000 Olympic
Games), it was probably a good thing that Sega's own effort made it
out the door after all. It may not have looked as good as Konami's
game ... but it certainly played better.
Without dispute, the dark horse Dreamcast
hit of the summer of 2000 was Sega's own Virtua Tennis. It
was so good that people who didn't give a crap about tennis (like this
author) found themselves playing the game for hours on end. The
game looked real, the players looked real, the game engine was spot-on
perfect, the controls were easy to master - in fact, the only thing
wrong with it was that it didn't have any female players for girl gamers
to choose. Sega later admitted that this had been a terrible
oversight on its part and promised them for the sequel (which it
delivered by the end of the year); nevertheless, Virtua Tennis
went on to become the biggest hit Dreamcast would have all
summer.
Speaking of Dreamcast software, it was
around this time that Electronic Arts (EOA) decided to rub some salt in an
old wound with some rather nasty public comments by EA president John
Riccitello. In an article with Forbes Magazine concerning how the
company made its decisions to support various systems, Riccotello refused
to admit the mistake that EOA had made in not developing software for
Dreamcast (and thereby losing a potential 20% increase in profits for
Q4/1999). Instead, he inadvertantly revealed that EA's exclusive and
profitable product contracts with Sony would have been placed in jeopardy
had it decided to go through with its announced DC development
plans. Sega's Peter Moore was justifiably upset at the revelation,
as were many gamers like Tom Moore. "For every dollar EA would have spent
on the DC, they'd have gotten over ten back. Losers," he snarled in
an interview with IGNDC at the time. That fact was made painfully
clear at the end of July, when EA's first quarter 2000 earnings statement
was made public. The company had suffered a staggering 30% drop in
revenue during that particular accounting period - and all because (as
everybody pointed out) they had stubbornly refused to back the
Dreamcast. It was money they would never recover, but then again
they were backing Sega's more profitable competition. The U.S.
launch of Sony's PlayStation 2 was practically right around the corner, so
as far as Riccitello and his gaggle of goons were concerned, it would
eventually pay to wait.
_files/DC-SpaceChannel5(U)_box.jpg) You see, despite the massive amounts of
positive spin that Sega of America was putting out regarding its summer
efforts, all was not well for Dreamcast. Every month that went by
that summer saw the loss of yet another high-profile title or port.
Soul Calibur 2 ... Max Payne ... Galleon ... Rayman
3 ... Anachronox ... Messiah ... Supreme
Snowboarding ... and so on and so on. The list continued to grow
as the weeks rolled by as one by one major vendors began shutting down
their Dreamcast efforts citing their questions regarding the future of the
plaform in the wake of the arrival of Sony's PlayStation 2 in the West
that fall. While we're at it, let's not forget the colossal
failure of Tetsuya Mizuguichi's rhythm and dance game Space Channel
5 to catch on with the American gaming public despite a massive
marketing effort and heavy promotion on MTV. Late in the summer, a
spokesperson for Bandai announced that it would not be releasing any more
Dreamcast games in the U.S. based on its popular Gundam sci-fi
anime franchise due to sluggish North American sales of its first such
effort, Gundam Side Story 0079. Yes, there were still a lot
of impressive games on Sega of America's summer release schedule, but
Dreamcast continued its downward slide far faster than could be explained
away by the normal summer doldrums. As a result, many in the
software development community did not see much of a future for Sega's
little white box. Former Sega executive Bernie Stolar, now working
for Mattel Interactive, probably summed the situation up as well as
anybody. "I have financial concerns [about Sega's marketing model],
and until that's addressed to me, I have to wait and see." Many
others in the videogame industry were doing just that as the Dreamcast
continued to flail away at the North American market. I felt the
same way at that time, and here is what I had to say at the beginning of
that fateful summer in my monthly Dreamcast
newsletter:
Dreamcast
has got one good year left in the U.S., maybe two at the outside -
especially if they can pull off their Internet plans as expected.
After that, it's all over. One verse, maybe a chorus, and that's
it. End of song. I don't care how you look at it and from
what angle. If you'll just sit down and honestly run the numbers,
then this conclusion is inevitable .... [The problem is] not in the
hardware, it's not in the software, it's not in the advertising, and
it's certainly not in the user base. It's in [Sega's] market
strategy. It's not yesterday's console market anymore. It's
today's, and it's quite a different animal than yesterdays. It
nailed Sega of Japan right between the eyes. Sega of America is in
the clear for now, but their turn is coming within mere
months. It was known that Dreamcast console sales were
trailing well below Sega of America's intended sales targets. It
wasn't just the hardware that was suffering, either. Software sales
were being significatly impacted during the summer of 2000 as well, but by
another entirely different reason. The tale of why Sega's second and
subsequent generations of Dreamcast software never managed to meet sales
expectations on the whole from the summer of 2000 onward will have to wait
for a bit, however. First, we need to jump across the Pacific and
see what tune Sega of Japan was fiddling while Sega's Western fortunes
were burning.
_files/DC-SakuraTaisen3(J)_box.jpg) _files/DC-SakuraTaisen2(J)_box.jpg) It was over in Japan where the real story
behind the fate of the Dreamcast was unfolding. Week after week,
month after month, Dreamcast sales continued their steady downward
spiral. By the end of June worldwide Dreamcast sales were poised to
break the 6 million mark, but less than 1 million of those were in its
home country of Japan. With the exception of certain franchise
titles such as Sakura Taisen, very few Dreamcast games stayed more
than a week or two on anybody's weekly Top 10 Console Games chart.
Add to that all of those brand new PlayStation2s out there, even though
most Japanese had (by the record) bought them as cheap DVD players, and
some very nasty conclusions might be made by any Sega executive with a
modicum of intelligence. Sega's days on the home console market were
numbered. It was just a matter of when, not if.
Isao Okawa had already tipped Sega of Japan's hand back in December 1999
when he was widely quoted as saying that Dreamcast would be Sega's last
home videogame console. It remained for the year 2000 to see just
where Sega might be headed next. The first clue as to Sega's future
direction had occurred back on 13 April 2000. On that date, Sega of
Japan announced on behalf of the company that Sega was splitting its
highly profitable arcade division into five wholly owned subsidiaries in
an attempt to increase profitability and offset continuing losses in its
console division. In street talk, that meant that Sega was taking
huge Dreamcast losses and was having to make up the difference
elsewhere. "Elsewhere" quickly became "everywhere else" just two
weeks later, when on 24 April 2000 another Sega of Japan press release
announced company intentions to cut operational expenditures by some ¥30
billion across the board. Three days later, a story "from inside
sources" leaked on the Internet that Sega didn't even have enough money to
continue development on NAOMI/Dreamcast successor hardware, which had been
rumored to have been well underway for months. As the fiscal axe
began its long and ponderous swing across all of Sega's worldwide
operations, its development divisions began to seriously ponder
possibilities that even just a few months before would have seemed
unthinkable.
_files/P-IsaoOkawa.jpg) The departure of former Sega CEO
Shoichiro Irimajiri on 23 May 2000 was also significant with regard to
Sega's future plans. It was he who in true Japanese fashion
personally took the blame for the failure of Dreamcast to achieve a
significant foothold in the Japanese videogame market. Under his
watch and despite his best efforts, Sega had only sold about 600,000
Dreamcasts in Japan instead of the 1.1 million it had originally
forecast. It wasn't Irimajiri's fault - after all, there was the
problem with the PowerVR 2DC chip shortage - but he took the blame
nonetheless and stepped aside. Okawa accepted his resignation and
then announced that he was personally assuming the role of Sega CEO.
Not since the days of Hayao Nakayama had one man assumed the twin roles of
corporate chairman and CEO at Sega, but now it was Okawa's turn to play
the dual role. He confirmed for the record that
Dreamcast would be Sega's very last home videogame console, but that was
all he would say. Apparently far more was left unsaid, for
knowledgeable sources tipped off the Nippon Keizai Shinbun that a
lot more was fixing to take place within the hallowed walls of Sega
corporate. The company wasn't just going to abandon Dreamcast, reported
the newspaper's sources. Sega would eventually abandon the console
hardware business altogether. As if to confirm the story, a Sega
press release issued the very same day confirmed Sega's long-standing plan
to break up its revered software development division into nine
independent entities and its recent announcement concerning the
reorganization of its arcade division. Sega investors promptly
praised the move as a wise one, for it was now obvious to anyone with eyes
to see that something major was afoot inside Sega.
_files/P-HisaoOguchi.jpg) _files/P-YuSuzuki.jpg) _files/P-YootSaito.jpg) Not only was something major afoot inside
Sega, it had in fact been afoot for months. Okawa was no fool; he
could read the numbers as well as anybody. That was why he
eventually focused Sega's remaining Dreamcast marketing in North America
and more or less left Europe to its own devices. Back in Japan, he
had already put out the word inside Sega to "maintain face" while at the
same time start evaluating the potential of developing for and porting
existing software to Sega's competitor platforms. A final decision
about which of these to support would not be made until the summer, so
Sega's R&D dutifully began evaluating one console after another.
Personal computer porting and development was a no-brainer, as Sega had
been doing this for years in one form or another, but the new nextgen
consoles were a different matter entirely. Yuji Naka and his fellows at
Sonic Team were openly contemptuous of Sony's 128-bitter. "I do not
think much of PlayStation2," Naka was later quoted as saying. At the
same time, though, Naka and company were intrigued by the possibilities
that Nintendo's latest hardware had to offer. They had already
developed a 16-bit Sonic game for the failed NeoGeo Pocket and were
candidly eyeing the prospect of ports to both GameBoy Advance and
soon-to-be-launched GameCube. Perhaps the public admiration by
Nintendo überprogrammer Shigeru Miyamoto for Sonic Team's recent Dreamcast
efforts had a lot to do with it. Perhaps it was simply Naka's
personal familiarity and years of unauthorized experimentation on Nintendo
hardware. Perhaps it was something else altogether. Whatever
the reason, Sonic Team began gravitating towards Nintendo platforms for
the bulk of their future efforts. In this move Naka was joined by
others at Sega, most notably Toshiro Nagoshi and his team over at the
Amusement Vision division. On the other hand, Yoot Saito and his
staff - who were already well underway developing the sequel to the hit
Dreamcast game Seaman - quickly gravitated toward Windows
based personal computers and also began evaluating the prospect of doing
the Seaman sequel on Sony's nextgen console. "What's
important is installed user base," Saito later shared with reporters as to
the reasons behind his decision. Yu Suzuki and AM2 found themselves
siding with the quirky Saito insofar as PS2 and PC porting and development
went, but were not the first to seriously consider the possibilities of
XBox. Hisao Oguchi and his crack team of programmers within Sega's
Hitmaker division were so excited at the possibility of developing for
XBox that they were already beginning to jot down ideas for XBox
games. The software development teams at Sega of Japan were not
alone, however. Overseas in America, Sega Sports had also seen the
handwriting on the wall and were salivating at the prospects of releasing
its flagship titles on both XBox and PS2 as soon as possible. So on
it went, with each one of Sega's software development houses evaluating
and then picking those of its competitors' systems that it liked the
most. By the time summer 2000 rolled around, everything was in place
to proceed. On 6 June 2000, Sega
of Japan penned a deal with Motorola to develop Internet-capable
videogames for a new generation of cell phones soon to hit the Japanese
market. A few days later, it was revealed that both old and new Sega
titles would be making the transition, including the venerable
Columns and several games based on Sega's flagship Sonic the
Hedgehog franchise. Most industry watchers lumped this
announcement in with the NeoGeo Pocket port of Sonic Adventure and
went on about their business. In retrospect, it was a portent of
things to come.
It was not until the end of June that
Dreamcast console sales in Japan finally broke the 1 million mark.
By then, though, other news from inside Sega corporate eclipsed any
recognition of that dubious milestone. On 20 June 2000, Sega officially
released all of its software development divisions to develop for whatever
platforms they chose. It was merely public acknowledgement of
what had been quietly building inside Sega for the past half-year or
so. The move was welcomed by practically everyone within the
industry and correctly interpreted for what it was. By swallowing
its pride and commencing development of Sega games on non-Sega platforms,
Sega could spread its product around to a wider user base and thereby
increase sales, thus dramatically improving its chances of returning to
profitability. Word on the street had it that Sega was already
developing ports of hit Dreamcast titles for both XBox and GameCube, and
in retrospect those surmises were about as correct as could be.
Strangely enough, the possibility of Sega developing for Sony's
PlayStation2 was discounted even though Sega had already licensed a port
of its own Crazy Taxi 2 by Acclaim for the platform.
Apparently internal security surrounding the home console version of Yu
Suzuki's latest incarnation of Virtua Fighter was so tight that
nobody knew for sure on just which platform it would
appear.
_files/DC-FerrariF355Challenge(J)_box.jpg) _files/DC-ShukotoHighwayBattle2(J)_box.jpg) _files/DC-JetSetRadio(J)_box.jpg) It cannot be said that Sega of Japan did
not have a sense of humor as to the precarious predicament that the
company was in. At the annual stockholder's meeting on 21 June 2000,
all 62,239 Sega corporate shareholders received (or were mailed) their own
individual "Poo-Chi" electronic dogs, products of the company's Sega Toys
division. The custom Sega shareholder version came with its own
exclusive bone. Some were quick to quip that the bone symbolized their
growing frustrations with a company that was still sucking bilgewater at
the bottom of the Nikkei stock exchange. Others took it in stride,
because it was one of the few Sega ventures that was generating a
profit. The toy had proved to be a phenomenal hit in Japan when
first released and was soon exported worldwide to moderate success, thus
adding desperately needed cash to Sega's ever-dwindling coffers. It
was not soon enough for Sega of Japan employees, though, who saw their
annual bonus checks slashed by 20% as a result of the company's bad
financial predicament. It wasn't about to get any better.
Dreamcast console sales results for Japan had just come in, and they
showed an alarming downward trend - from over 80,000 units sold per month
at the beginning of the year to just over 34,000 units per month by the
end of May. Dreamcast was now the #3 console on the Japanese
videogame market with some 282,238 units sold to date that year, having
just edged out Sony's original PlayStation for the spot, but it was over
800,000 units per month behind #2 Nintendo with its handheld GameBoy
Advance. "And who was number one in Japan for the first half of
2000?" you ask. Sony's PlayStation2, with 1,924,581 units
sold. Cheap DVD player wisecracks aside, Sony was wiping the floor
with the financially beleaguered Sega and there was precious little the
latter could do about it. Console sales were going in the toilet and
dragging software sales right along with them. Even such highly
anticipated titles as Genki's street racer Shukoto Highway Battle 2,
Sega's own unconventional Jet Set Radio, and the home console
port of Yu Suzuki's arcade racer F355 Challenge only stayed on the
Dengeki Top 30 charts for a few weeks before slipping off, never again to
return. It was a pattern that would become all too familiar to
Dreamcast gamers in Japan as the months dragged on.
Starting on 30 June 2000, all new shares
of Sega corporate stock were no longer issued in the name of Sega
Enterprises, Ltd. Instead, they were issued in the name of Sega
Corporation, or just plain SEGA for short. Why the
name change? Sega was now a household word. Most people either
didn't know or didn't care how the company got its name; that's what
everybody called it, so it was more convienent to change the name than
continue wasting money on ink printing out the older, longer one. It
was not without precedent. Back in the 1980s, the American Telephone
and Telegraph Company had its name legally changed to its corporate
abbreviation, and it is by the trademarked name AT&T that we still
call the same company today. If anything, it was confirmation that
the Sega brand and identity were now firmly ensconced in the world
consciousness. That, after all, was one of the things that Isao
Okawa had been hoping to accomplish in his determined drive to rebuild his
beleagured company. Their finances might have been in the toilet,
their profit projects still in the red, but at least Sega still had its
name and the reputation for excellence and innovation that went with
it. That would prove crucial to the company's future plans once the
year 2000 began to draw to its close.
Speaking of which, Sega of Japan managed
to surprise everybody by pulling a rabbit out of its hat the following
month. On 5 July 2000, after three straight years of heavy losses,
internal projections showed Sega barely eeking out a profit for the first
quarter of 2000 to the princely figure of ¥5 billion (US$47
million). The news was as much a surprise to Sega's own people as it
was the industry, but everybody knew why. If the projected profit
held and Sega finally made it back into the black, then it would be
entirely due to Isao Okawa and the drastic cost-cutting measures he had
implemented earlier in the year. It was only a projection and the
rest of the year could change everything, but Sega trumpeted this
unexpected bit of good news for all it was worth. After all, who
could blame them? Encouraged by its unexpected turn of good fortune
and spilling over at the rim with new product to show, Sega elected to
follow the lead of both Nintendo and SNK and skip the Fall 2000 Tokyo Game
Show, holding its own in-house event instead. It had the
programmers, it had the product, but most importantly it looked like it
finally had some profits once again.
Still, there was no question who had
won the 128-bit nextgen console war in Japan. Sony was easily
selling nine times as many consoles as Sega despite less time on the
market. Sony held 65.3% of the Japanese videogame market in
comparison to Sega's dismal 11.1%, and even that small share was being
squeezed out still farther by a resurgent Nintendo. Sega may have
sold almost 6 million Dreamcast consoles worldwide, but it was taking
about a ¥10,000 hit (US$95) per console sold and selling less and less
consoles every day. That plus software sales falling far short of
expectations meant that the handwriting was on the wall insofar as Sega of
Japan was concerned. It was time to leave Dreamcast behind and move
on to other platforms. It simply had no choice. Daily Radar
put it best in its online article "Sega's Chances" when it said, ""If
Dreamcast does fail, it will not be because there were no good games
available for it. Few if any consoles have been blessed with such an
astonishing catalog of games so early in their lives as the Dreamcast
has. No, if Sega suffers defeat, it will be because other machines
are backed with more cash."
Despite all of the maneuvering by Sega's
various worldwide branches, the steady exodous of third-party developers
from the Sega fold continued throughout the summer of 2000. SNK and
then Koei were the first to go in June - SNK due to bankruptcy more than
anything else and Koei due to lukewarm reception of its wargaming sims
among Dreamcast gamers. Namco officially discounted the possiblity
of Soul Calibur 2 for Dreamcast that same month due to sales of the
first game not meeting projected expectations. More left the
Dreamcast ranks as the weeks rolled by. Gathering of Developers
swore up and down that not only would a Dreamcast port of Max Payne
not be released, but that it would not be released for any home console -
then quietly went to work on doing just that for Sega's competition.
Confounding Factor's long-anticipated first-person RPG Galleon was
suspended, then "delayed indefinitely" due to "development issues."
UbiSoft quickly put to rest all rumors of another Rayman title
being released for Dreamcast and quietly began killing off all of its
remaining Dreamcast projects one by one. Bandai publically dashed
all hopes that additional Gundam titles for Dreamcast would be
exported overseas, citing sluggish sales of Gundam Side Story 0079
in both Europe and North America. One company that was not
supporting the Dreamcast was quick to say why. "The Sega Dreamcast
... is not a strategic platform ... in the long term," noted TH*Q company
president Brian Ferrell. "We believe that once PS2 is released
[overseas], the Dreamcast revenues will trail off in both Europe and
America very quickly and very significantly." It should be noted
that similar doubts about the future of Dreamcast had prevented TH*Q from
supporting the platform in the first place. The slow bleeding of
Dreamcast developer support that had started at the beginning of "the year
of the Dreamcast" was fast turning into an unstoppable
hemhorrage. As for Sega's
attitude? It plowed right on with its plans, seemingly undaunted by
the mounting red ink, oblivious to the increasing number of departures
within its third-party fold and unsympathetic to the howls beginning to
arise from within the ranks of its own supporters. Well do I
remember how I felt by the sad state of Sega's affairs as the summer of
2000 wound down, and again I quote from my old Internet
newsletter:
I think it was ODCM {Official Dreamcast Magazine -
ed.] who recently noted that Sega's new mascot should be Samba the
monkey. After thinking about it for a while, I kinda agree with
them. Samba just dances right along with that stupid yet
infectious grin on his face, without a care in the world, not really
aware of what's going on around him but not giving a flying, er, flip
either. All he knows how to do is dance, and he does it very well,
so that's all he does in the face of trouble - dance. Kinda like
Sega. All they know how to do is videogames, and they do them very
well, so they plow merrily along, seemingly oblivious to what's
happening to their markets. Sega would receive
its wake-up call far sooner than it had dared hope, and when it did, it
would be in the form of a direct assault on its projected year 2000 profit
margins from which it would never recover.
The
pirates strike back
The one marketing front on which Sega was
still nervously chewing its nails was Dreamcast software. Why?
Software piracy. So far, Sega had been incredibly lucky that no one
had been able to pirate Dreamcast games. The custom GD-ROM format
Sega employed for Dreamcast software thwarted many an effort by the best
Asian software houses to duplicate it in a cost-effective manner.
Despite rumors of pirated Dreamcast games showing up in the usual places
(Hong Kong, Taiwan, Malaysa, etc.), very few people had actually seen, let
alone buy, a Dreamcast bootleg. The GD-ROM format required specially
modified CD-R/RW drives to duplicate and simply would not play in a
standard CD-ROM without extensive modification. Thus, Sega had
enjoyed 100% of what profits were available from Dreamcast software sales,
low as they were, for the simple reason that Dreamcast piracy was
practically non-existent. In fact, Sega was so confident that the
status quo would continue that some of its future software sales
predictions didn't take potential Dreamcast bootlegging into
account. Sega had managed to prevent bootlegs of Dreamcast games
from being released for almost two years now. It was a timespan
quite unprecedented in recent videogame history, yet the sands of Sega's
hourglass were about to run out. Ironically enough, it was none other than
Sega of Japan who had made Dreamcast piracy not only possible, but an
inevitable reality.
Back up if you will to the spring and
summer of 1998. Sega of Japan's R&D divisions are finishing up
their work on the Dreamcast. For their convenience and in order to
speed up software development on the console, Sega's programmers hide a
series of special routines inside the code of the master console BIOS that
will eventually be duplicated and burned into every single Dreamcast
console produced for all markets. Mind you, this hidden code is
buried fairly deep inside the Dreamcast BIOS. You would have to know
where it is and for what you were looking in order to find
it. "What was this hidden
code?" you eagerly ask. It was the ability for a stock Dreamcast
console to boot and run software using standard CD-ROMs instead of Sega's
proprietary GD-ROMs.
Remember, these hacks were something
nobody was ever supposed to learn about. According to my inside
sources (which shall forever remain anonymous), Sega of Japan intended to
add protection features to every Dreamcast game released that would
prevent it from being booted from CD-ROM should those hidden BIOS routines
ever be discovered. The only problem was that they did such a good
job of hiding Dreamcast's secret CD-ROM game-playing capability that they
soon stopped protecting the software against it. Once official
Dreamcast devkits went out to the third parties and everybody accepted
doing business Sega's way with GD-ROM, the whole affair was apparently
forgotten. Thus, Sega set itself up for its own downfall - one that
would take place a mere two years later. You see, it was only a
matter of time before software pirates would stumble across a means of
unlocking Sega's proprietary GD-ROM disc format for Dreamcast and devise a
means of duplicating the software. The key would be getting their
bootlegs to work on a real Dreamcast console without any major hardware
hacks involved. This is where Sega of Japan's hidden BIOS routines
come into play. If a hacker somehow found those BIOS routines and
got that code to work with a game that had been dumped from GD-ROM to
standard CD-ROM, well then ... Sega's software sales were going to take a
royal pounding before all was said and done.
The first such public indication that the
hackers were getting close to cracking open the Dreamcast's secrets was on
19 June 2000, when RealWorld Technology released the Dreamcast Debug
Developer. It was a wonderful piece of reverse-engineering that gave
this team of German hackers what they needed to code their own demos on
the console. It was a pure hardware hack interfaced to a
Wintel-based PC or high-end Amiga computer running appropriate host
software, but it was still quite an accomplishment and worked as
advertised. All those who saw the Dreamcast Debug Developer in
action were suitably impressed, and many of them rightly guessed then and
there that it would not be long before other such efforts would
surface.
Actually, at the beginning of 2000,
several pirate groups had obtained full-blown legit copies of both
Dreamcast SDKs along with the appropriate hardware through various and
sundry means, enabling them to read GD-ROMs directly and figure out how to
decode them onto standard CD-ROMs. The key breakthrough apparently came in
the spring of 2000, not long before the Dreamcast Debug Developer was
made, when one of these groups chanced upon a security hole in the
Dreamcast's bootstrap sequence that had been deliberately put there by
Sega of Japan. When activated by what has been described by some as "a
convoluted control sequence," it enabled a stock Dreamcast to access those
hidden BIOS routines we talked about earlier. Instead of reading a
Dreamcast GD-ROM the way it was supposed to do, from the outside in, it
resequenced the bootstrap routine to read the disc from the inside
out. This meant accessing the low-density, standard format area of a
GD-ROM (the inner hub) instead of the high density area with its
proprietarly format (the outer, larger hub). In other words, this
group had just uncovered how to make a Dreamcast boot off of a standard
CD-ROM. From that point onward, it was only a matter of time until
this or another such group devised a means to both enable standard CD-ROM
support for Dreamcasts games and to come up with a way to convienently
download game program code stored on GD-ROM to
CD-ROM.
On 23 June 2000, another group of German
videogame hackers stunned the world. Team Utopia became the first
"release group" to successfully decode and burn a GD-ROM based Dreamcast
title onto a standard CD-ROM, thus enabling it to be copied at will.
Use of their so-called "DC backup" required a special boot disc for the
console, which was distributed along with the illegal bootleg (and quickly
made available for sale by a shadowy Chinese firm named Lik-Sang).
The subject of the first Dreamcast bootleg was the highly acclaimed
fighting game Dead or Alive 2, but other such "Utopia backups" of
games like Soul Calibur and Resident Evil - CODE: Veronica
followed within days. Approximately one month later on 21 July
2000, in a joint press statement with the IDSA's Douglas Lowenstein, Sega
of America's Charles Bellfield publically commented on Sega's action
against the sudden rise of the Dreamcast piracy scene. More than 60
Internet sites and over 125 online auctions had been shut down due to the
presence of illegal DC "Utopia bootlegs." Bellfield also announced
that Sega had formed alliances with many leading service providers to
ensure that its intellectual property would continue to be protected under
the newly enacted Digital Millenium Copyright Act of 1998 (DMCA).
Sega's actions marked the first time that a videogame vendor had invoked
the DMCA to go after Internet piracy It was a bold move by Sega and
it wasted no time making good its word with swift prosecution of all
offenders it could find, yet the bootlegs continued. The day after
Bellfield made his anti-piracy statements to the press, the Dreamcast
release group Kalisto unleashed the bootleg version of World Series
Baseball 2K1 on the Internet. Kalisto had timed it to hit the
Internet the same day that the actual game appeared on retail store
shelves. By the following week, Sega of Japan had joined the legal
battle, joining the efforts of Japanese law enforcement in cracking down
on the hundreds of illegal "ROMz sitez" on the Internet promoting the
distribution of Dreamcast bootlegs. It was of no avail.
Dreamcast piracy had become so rampant within so short a time that by the
end of July the company was begging anyone who could (or would) give them
information regarding the production and distribution of Dreamcast
bootlegs to contact them immediately.
The conflict between Sega and the
Dreamcast pirates continued straight through the end of summer and
beoynd. On 1 August 2000, the noted online audiovisual store
Amazon.com earned a ringing endorsement from Sega for thwarting Dreamcast
piracy in all forms via its website. Not to be outdone, the hackers
quickly learned how to get around the copy protection that Sega was now
requiring its third-parties to include with their games, and the "ripped"
Kalisto release of Toy Story 2 was the first such product from that
effort. Two weeks later, Kalisto again made people's head spin when
it announced it had managed to come up with a way to combine the Utopia
bootloader code and Dreamcast bootlegs onto a single CD-ROM. It left
a little less space for the pirated game on the disc, but self-booting
bootlegs would soon become the standard format for distribution of pirated
Dreamcast games. Ironically enough, Kalisto chose Sega's own
Virtua Fighter 3tb and Dynamite Cop to tout this
accomplishment. Sega and its allies was understandably
unimpressed. On 25 August 2000, the eBay online auction service shut
down all auctions involving so-called "Dreamcast backups" and promised
swift legal action against any customer who used its site to deal in
so-called "infringing goods." Kalisto abruptly left the scene one
week later, but their shoes were quickly filled by the release group
Echelon and the steady stream of Dreamcast bootlegs on the Internet
continued unabated. Echelon made the self-booting tools widely
available on the Internet in September, and this coupled with pirated
versions of both Dreamcast SDKs that got out meant that anybody who wanted
make and distribute a Dreamcast bootleg could do so at
will. And as for Team
Utopia, the German hackers that started it all? Their true
identities were eventually discerned, due in part to their foolishly
including a picture of themselves on their Utopia Boot Loader disc. They
were eventually arrested by German police on 5 July 2000 and charged with
multiple counts of copyright violation. No other news has surfaced
concerning their fate as of this date.
For Sega, it was a losing battle and the
end results were quite predictable. Every month or two, Sega would
succeed in shutting down almost all of the major Dreamcast bootlegging
sites on the Internet. Within two to three weeks, even more new ones
would appear, many with the latest releases. Sega could never stop
the millions of transfers taking place via UseNet, IRC, FTP, FXP, and so
on all across the Internet. For every site or auction that Sega and
the IDSA managed to shut down, at least three and perhaps as many as four
more sprang up in their wake. It still remained dreadfully easy to
get Utopia backups off the Internet, provided you knew where to look and
were willing to put up with the hassles and posturing of the many strange
denizens inhabiting the darker corners of the Internet underground.
For all their trouble, Sega's efforts at shutting down Dreamcast piracy on
the Internet worked about as well as shoveling sand with a
pitchfork. C. H. Phoon, president of Hong Kong's Golden Harvest
Studios, described the problem with another metaphor. "[Combating
piracy] is like pushing water uphill. We are talking about piracy in
10 or 12 different countries around the region, all with their own legal
systems and interpretations of copyright laws. You can solve a
problem in one market and it just moves to another." For their part,
the pirates claimed that their actions were justified because they helped
increase Sega's dismal console sales, with some unofficial sources
claiming as much as a 20% boost. The number sounds ridiculously
inflated (a lower figure of 11% sounds more reasonable, based on my own
independent research at the time) yet in the end it really doesn't
matter. Why? Because the software pirates were hitting Sega
hard below the belt in the one place where profit mattered - Dreamcast
software sales.
If you were an Internet-savvy Dreamcast
owner in 2000 and you knew how to get the Dreamcast bootlegs and from
where, then one question was obvious. "Why pay for the game when I
can download it for free? I know it's illegal, but I've got better
ways to spend US$50 than on a videogame that I might only play for a few
weeks." Many of these gamers around the world chose to set their
morals aside and do just that. Oh, a few would hear the calls of
their conscience and actually go out and buy some games, but not all of
them. Some, especially the out-of-market releases, could not be
obtained in any other way save through pricey export shops. No gamer
in their right mind was about to pay close to US$100 for a game in a
language he or she couldn't read when it could be downloaded for free off
the Internet back channels, and again many chose to do just that. It
has been estimated by the Dreamcast bootleggers themselves that they
averaged between one and three million hits a day on their pirate file
servers whenever popular Dreamcast titles, such as Shenmue,
Grandia 2, Resident Evil 2 or the Sega Sports games came up
on the Dreamcast bootleg release schedule. The millions of people
illegally downloading Dreamcast games from the Internet for the most part
didn't care that Sega was losing millions of dollars in lost software
revenue as a result of their actions. In the words of one proud
FXPer, "F--K SEGA I'LL LEECH THEM DRY." Dreamcast software piracy was more than
just an annoyance to Sega. It was one of the major factors, if not
the major factor, that kept the console from ever turning a
profit.
Down to
the wire
_files/HW-N64(U).gif) The last four months of the year 2000
would prove to be the most crucial for the continued future of the
Dreamcast. Remember, in the eyes of Sega CEO Isao Okawa it was no
longer a question of if the console was going to be scrubbed.
It was merely a question of when. Dreamcast had failed in
Japan. It was not failing in Europe, but the overall weakness of the
128-bit nextgen market there coupled with Sega's own limited market
penetration meant that European sales made hardly a dent in Sega's massive
debt load. The only major market left where Sega might be justified
to keep Dreamcast alive a while longer was in North America.
Dreamcast had been well received where once the 16-bit Genesis had ruled
the roost, and Sega of America's marketing and support efforts had
realized the first of of Okawa's restructuring goals: the rebuilding
of Sega's public image. Dreamcast, while not as strong a contender
as had initially been hoped, nevertheless was making a significant market
impact and seemed to be gaining momentum. One more big push might
displace Nintendo from the #2 spot in the North American market - and if
sales were indeed strong enough to do just that, then Dreamcast might
actually turn the corner in the one market that mattered the most.
This time around, Sega of Japan was not about to leave Sega of America
high and dry. They were kept up to speed with developments back at
Sega corporate and given all the technical support that the financially
ailing company could muster. The odds were long, but Sega had faced
long odds before in its corporate history over the years. Thus,
Okawa and his staff back in Japan willingly turned over the future of
Dreamcast to Peter Moore and company over in the United States along with
the last of Sega's cash reserves, then went back to finalizing their plans
to transform Sega once Dreamcast had been laid to rest. Dreamcast
might still fail, but it would not be from lack of trying. Sega's
last home videogame console would have everything at its disposal that
Saturn had not a mere three years earlier - plenty of cash, plenty of
support, and full backing from all branches of the
company.
The long-held rumors of a
significant price drop in the price of the base Dreamcast system began to
gain credence at the beginning of August, encouraged by reports from U.S.
videogame magazines and deliberate leaks from Sega of America. Even
Peter Moore himself hinted at a coming price drop several times. It
was just part of Sega of America's overall strategy to aggressively
advertise Dreamcast like no other Sega console had been marketed since the
days of the Genesis. Peter Moore and his staff were taking no
chances with the monstrous impact that PlayStation2 would obviously have
on Dreamcast sales. They had spent a lot of time and effort
launching the system, getting the software out the door, getting the
Internet strategy in place, and overhauling Sega of America's marketing
strategy. Now it was time to go for broke, pushing Dreamcast as long
and hard as they could to as many customers as possible before they got
overtaken and buried by the Sony juggernaught. Sony was launching
they PlayStation2 in the United States come November and eager buyers
nationwide were already scrambling for advance orders.
GameBusiness magazine hit the nail on the head when they printed
that the arrival of Sony's newest console had "...a good chance of forever making the Dreamcast a niche - and
narrowly appreciated - game console." Sega of Japan had been working nonstop to
make sure that Sega of America had enough consoles were ready for its big
holiday 2000 marketing push in North America. There were already 2.1
million Dreamcasts sitting in the homes of U.S. gamers by this
point. Sega of America had as its stated goal 5 million Dreamcasts
sold by March 2001, with the bulk of those being moved during the highly
competitive holiday shopping season. Now was the time for Moore and
company to put the other pieces of their Dreamcast strategy into
place: more high-caliber software, online gameplay realized, and
competitive pricing.
_files/DC-SonicAdventure(U)_box.jpg) _files/DC-NFL2K(U)_box.jpg) Good news for Dreamcast bargain hunters
came at the end of summer, when on 1 August 2000 Sega of America
officially announed off its All-Stars lineup. Similar to Sony's
discount lineup for the venerable PlayStation, it consisted of past hit
Dreamcast titles (all of which had turned a profit, by the way) selling
for "the incredibly low price of US$19.99." Having moved some 9.1
million units of Dreamcast software overall in North America mean that
Sega of America could ease its pricing a bit on older but still popular
titles. The first six games in the Greatest Hits lineup made quite
an impressive lineup for the cost-conscious gamer: Crazy Taxi,
House of the Dead 2, NFL 2K, NBA 2K, Sega Bass Fishing, and of course
Sonic Adventure. The Dreamcast All-Stars lineup officially
began shipping on 22 August 2000, and U.S. gamers jumped on it with such
fervor that soon Crazy Taxi and Sonic Adventure were once
again competing for bragging rights on the various top software
charts. That was not all, for Moore and his staff had assembled and
had waiting in the wings of the Dreamcast release schedule what would
become the console's third and grandest generation of videogame
software. If you though that previous titles in the Dreamcast
arsenal were impressive, then check out some of the ones that were first
offered to gamers in the fall and winter of 2000!
18-Wheeler: America Pro Trucker
(Sega)
Capcom vs. SNK (Capcom)
Grandia 2 (GameArts) - Long awaited
by RPG freaks worldwide, this was the sequel to what is considered to be
the finest old-school RPG ever to grace the ill-fated Sega Saturn.
The original had never been released on a Sega platform outside of
Japan, and many gamers (rightly or wrongly) named this as one of the
reasons why Saturn had failed. Sega would not repeat this mistake
a second time. North American and European gamers had finally
gotten to see the original once it had been ported to the Sony
PlayStation, and now many were frothing at the mouth at the chance to
see a full-blown über-RPG in all of its 128-bit glory. "Screw the
pretty yet shallow Evolution series," they demanded. "We
want Grandia 2!" Even the RPGers who weren't Dreamcast
gamers were watching for this one, if only to show them the shape of
"real" nextgen RPGs to come. Anticipation was high, the
graphics coming from Japan were impressive, UbiSoft had outbid Working
Designs (!) for the U.S. distribution rights - and most of all, in the
words of one reviewer, "The word has come down from on high.
Grandia 2 kicks ass." It would eventually take its rightful
place among the hallowed halls of Dreamcast software as the best
third-party RPG ever created for the platform and one of the greatest
RPGs of all time.
Jet
Grind Radio (Sega)
Metropolis Street Racer (Bizzare
Creations)
NFL
2K1 and NBA 2K1 (Sega)
Phantasy Star Online (Sega)
_files/DC-DinoCrisis(U)_box.gif) _files/DC-ResidentEvil3(U)_box.gif) Resident Evil 2, Resident Evil
3, and Dino Crisis (Capcom) - Yes, these were ports of
PlayStation games, but the Resident Evil franchise was among the
most popular in the videogame community. Resident Evil - CODE:
Veronica had been well received by Dreamcast gamers and had set the
standard for future installments of the series to come. In
releasing graphically enhanced ports of these two older titles, Capcom
was paying tribute to the hundreds of thousands of gamers worldwide who
had shown their approval for Capcom's support of Dreamcast. Now it
would not be just PlayStation and PC gamers who would enjoy the thrill
of two of the franchise's earlier adventures. Capcom also through
in a nice port of Dino Crisis in the process, thus continuing
their reputation of being the one Japanese videogame company more
inclined to support Sega than any other in its
endeavors.
Quake
3: Arena (idSoft)
Red Dog (Argonaut) - One of the very
first Dreamcast games ever developed took over a year to finally make it
to market, but the wait was well worth it. Programmed by the same
software house that had helped Nintendo develop StarFox for the
venerable 16-bit SNES, Red Dog was a decidedly unconventional 3D
first-person shooter in which players piloted a heavily armed and
armored all-terrain tank around and inside a decidedly hostile alien
planet. It was the only game that Argonaut ever released for the
platform, but its outstanding graphics and high-octane gameplay make it
a standout among the many Dreamcast shooters out
there.
Samba
de Amigo (Sega)
Sega
GT (Sega)
Shenmue (Sega)
Skies
of Arcadia (Sega) - The only real contender with Grandia 2
for the coveted title of best Dreamcast RPG ever made was this
impressive effort by none other than Sega itself. Its storyline
may have been lighter, but its scope was just as sprawling and its
graphics every bit as impressive.
Super
Runabout: San Francisco Edition (Climax)
Test
Drive: LeMans 24 (Infogrames)
Tony
Hawk's Pro Skater 2 (Activision)
Unreal Tournament (Epic
Games) It was an
impressive lineup by anybody's yardstick. "Sega fans can look
forward to the best software lineup the videogame industry has seen in
years," noted SegaWeb's John Benn, and he was right. No other
videogame console at the time - not PlayStation, not N64, not even the
up-and-coming PlayStation2 - offered the overall excellent and scope of
what Sega offered its Dreamcast users the rest of that year. The
first generation of Dreamcast software was good, the second had been
outstanding, but the third promised to be simply phenomenal. Best of
all, it was this generation of Dreamcast games that would have the
long-advertised yet still-largely-unavailable online gameplay capabilities
that had been advertised ever since the console had been launched in North
America almost a full year before. The games were waiting in the
wings - now where was SegaNet?
Full-scale beta testing of SegaNet began
on 8 August 2000. This was another of Okawa's dreams realized in the
one market that mattered the most, and his enthusiasm for online gameplay
was shared not only by Sega of America but by eager Internet-savvy console
gamers across the United States. Long had they lusted after their PC
counterparts busily fragging each other with popular multiplayer
first-person shooters such as Half-Life and the Quake series
of games, or engaging in EA Sports's many Internet-capable multiplayer
professional sports simuations, and so on. Now it was their
turn, and Sega was the one company making that dream a reality. Two
weeks later, on 21 August 2000, as the result of a special drawing, 100
lucky Dreamcast owners got the fledgling SegaNet all to themselves for a
full week of non-stop user testing. After some more tweaking, the
testing resumed with both Sega personnel and those select 1000 lucky
gamers breaking in more Dreamcast's new lineup of SegaNet-ready
software. The final testing cycle was completed by 6 September 2000,
with rave reviews all around by both participants and onlookers
alike. Long delayed and decidedly overdue, Dreamcast's online
gameplay network would finally be realized the following day. It was
a good thing, too, because console sales had already started to pick up
dramatically.
On 12 August 2000, Wal-Mart Discount
Cities (the world's #1 discount retail store chain) dropped the price of
the Dreamcast to US$150 nationwide due to, as it put it, "sluggish console
sales." To say the folks at Sega of America were pissed would be
putting it mildly. There were two reasons for their muted yet
obvious irritation at Wal-Mart's move. First, Wal-Mart's stated
reason was bad press at a critical time, just as Sega of America was
ramping up its marketing campaign for the holiday 2000 shopping
season. Second, it was too early. A price drop was definitely
in the works, but it was supposed to be according to Sega's plans.
Being the leading retailer in the business meant that others would
naturally follow in Wal-Mart's wake, and that is exactly what
happened. Both J.C. Penny and Target followed Wal-Mart's lead a week
later, even though by that time Wal-Mart had let Sega talk them into
restoring the price back to US$200. Everybody knew that a US$50
price drop was coming, and soon. "Sega's denials ... are looking
sillier and sillier," noted SegaWeb's Scott Twining.
The first official permanent drop in the
price of the base Dreamcast system actually took place in Austraila on 17
August 2000. The system had sold so poorly that Sega had no choice
but to begin unloading it as fast as they could. While they were
also at it, Sega finally rid itself of Australian distributor OziSoft and
the poor performance it had consistently displayed Down Under in both
marketing and supporting the Dreamcast. Eight days later, reports
leaked from Sega of Europe indicated that an official US$50 price drop was
imminent and that it too would be adopting a similar reduction across the
Atlantic. On the very last day of the month, Sega of America
officially dropped the price of the Dreamcast base system in North Amercia
to US$150. Many gamers and some reporters cried that this move had
been long overdue, but most of them either did not know or care how
desperate a predicament Sega was in. Sega of Europe did the same the
following day. Dreamcast was now the lowest-priced 128-bit nextgen
console available, competing toe-to-toe with Nintendo's aging 64-bit N64
for rights to second place in the U.S. console wars. It was going to
be interesting to see who would cross the finish line at the end of the
year - would it be Sega's nextgen graphical prowess or the Nintendo's
legendary "inventory management" tactics? Only time and market share
would tell. Sega of America was
ready to meet the challenge it faced in the weeks to come. Peter
Moore was quite proud of what his company had to offer to its Dreamcast
customers for the coming holiday shopping season, and he let it be known
on 31 August 2000 in no uncertain terms.
We are
confident that our combination of great hardware, unsurpassed title
lineup and access to online console gaming will prove irresistible to
consumers - especially those who may be frustrated by the high price
point and 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. The hardware was
available, the software was ready to ship, the Internet gameplay support
was finally in place, and the price was just right. The time had
come for Peter Moore to unleash his last little surprise on an
unsuspecting North American public.
7 September 2000 will be a day long
remembered by Sega fans around the world. Yes, it was the day that
Sega of America officially kicked off its holiday 2000 marketing
campaign. Yes, it was the day that SegaNet finally launched,
introducing thousands of eager console gamers across the United States to
the wonders of online gameplay. Yes, it was the day that NFL
2K1 was released, with many of its buyers firing up its online
gameplay features almost as soon as they got the game home. Yes, it
was the day that Unreal Tournament was officially confirmed for
Dreamcast. All those were fine and good, but that is not the reason
why this day is remembered. 7 September 2000 was the day that Peter
Moore brought back the Sega Scream.
_files/P-PeterMoore.jpg) Earlier that summer, Moore had contacted
the advertising agency of Foote, Cone, and Belding about the possibility
of reviving Sega's trademark advertising campaign from its glory days
during the 1990s. "It was always in my plans to bring back the Sega
Scream," Moore noted later. He had never forgotten the impact that
the original Sega Scream ad campaign had made on him back in his early
days as an executive, and it was (by his own admission) the echoes of that
scream still ringing in his mind that had helped encourage him to join
Sega's ranks back in 1999. "That enthralled me," Moore recalled,
"from the simple fact that the way a name of a brand is said evokes an
experience, evokes a mentality, and that was exciting." He knew that
gamers had long associated Sega's unconventional image with the Sega
Scream, and for him bringing it back had always been a matter of
timing. The launch of SegaNet at the beginning of the holiday 2000
shopping season seemed the perfect opportunity, so onward he went.
His staff at Sega of America was delighted by the news, for it had been
the top question of many a nagging Sega gamer. "When are you going
to bring back the Sega Scream?" they would hear or read hundreds and even
thousands of times a week. "Your current ads suck! We want the
Sega Scream." Sega of America was listening, long-suffering Sega
fans now had a high-placed friend ready and willing to do something about
- and this time, he had the full support and blessing from his superiors
back in Japan to do something about it. The first three spots in the new Sega
Scream campaign were unveiled to the public during the 2000 MTV Music
Video Awards - the same television network where the original Sega Scream
had made its debut. They were designed to promote the next
generation of online-capable Dreamcast games, with two 30-second spots
specifically promoting the release of NFL 2K1 and one long
60-second spot promoting the entire lineup. All three featured
Sega's tradtional screwball advertising humor, and all three were well
received. Digital copies of the new Sega Scream ads appeared on the
Internet within minutes of their debut. Word-of-mouth was quick on
this news - "The Sega Scream is back!" Sega quickly farmed out the
ads to other broadcast and cable television networks, dutifully running
the NFL 2K1 ads during NFL football games whenever possible, where
they soon found themselves almost as popular as the shows on which they
appeared. To show you just how
faithfully Moore's staff recreated the spirit and wacky zaniness for which
long-suffering Sega fans had yearned, I invitie you to read the text of
the original 60-second "Civil War" ad that helped mark the triumphant
return of the Sega Scream. It was performed by none other that
Seaman, Sega's own intelligent virtual pet. It was an apt choice for
Sega's new commercial spokesman, for only a screwball character like
Seaman could deadpan this screwball commercial and get away with
it.
It's evening in America, and across this great land young men
and women are coming together through the power of the Internet with one
common goal - to whoop each other's bootys. Sega Dreamcast games
are now online, unleashing the ultimate horror - your fellow
Americans. Jack into SegaNet through your Dreamcast console and
join your countrymen in the virtual arena. Play NFL 2K1 and
cream four meatheads you've never even met. Play NBA 2K1
and school some farmboy without suffering the scent of livestock.
Or, play Quake III and waste some Jersey punk from the sanctity
of your own home. And so, America, SegaNet is born - and
suddenly we are one proud nation, indivisible, united in the pursuit -
of whooping booty.
SEGA! It was now down-to-the-wire time for Sega
of America. Everything was in place, and they had hit the ground
running with everything they had. The entire future of Dreamcast was
riding on Peter Moore and company. Isao Okawa's gamble, for better
or worse, now resided in their willing hands. If Dreamcast failed
to take the #2 spot away from Nintendo's aging N64 in North America by the
end of the year, then it was all over. Most videogame industry
analysts were predicting that Sony would wind up dominating the 128-bit
nextgen market with a whopping 70-75% market share by the end of
2001. Sega might not ever overcome such a formidable opponent in the
end, but it certainly had a decent chance of keeping its wonderful little
white console competitive in North America a little while longer. If
it could do that, then Dreamcast would definitely see another year on the
market. All eyes were now focused on Peter Moore and his staff over
in the United States to see if they could manage to keep the dream alive
going as the holiday 2000 shopping season began to take
shape.
Dreamcast's last stand
"When looking at where you'll
put your money this holiday season ... the Dreamcast will clearly be the
best place ...." - Brandon Justice, IGNDC editor, "The Year of
the Dreamcast"
<The
wierdness of the U.S. PS2 launch - Sega enjoys the fallout, but so does
Nintendo> <Sega and Nintendo battle it out for second
place over the holidays - Nintendo wins by a nose with the help of
Conker>
""Dreamcast is a fabulous product. It just hasn't caught
on. Everybody I talked to loves it. It just hasn't caught on
to the mass consumer, and that's unfortunate."
- Perrin
Kaplan, Nintendo of America executive vice president of sales and
marketing, as reported by Gamer's Republic
There was no question that the name
"Dreamcast" had been on everybody's lips all though the year 2000.
Whether it be the excellence of its software library or Sega's valiant
struggle to keep the world's first 128-bit nextgen system alive, all
agreed that that the year had belonged to Sega's little white box.
"Despite what the hypemasters and ad flacks have told you," proclaimed
Daily Radar, "2000 was the year of the Dreamcast. Sega
little console that could did, and did so in a very big way."
Unfortunately, it was not enough to save it from its ultimate fate.
It may have been the darling of the videogame industry in the West, but
all that mattered to its masters in the East was the bottom line.
Peter Moore had done his best and it was an admirable job by any measure,
but it had not been enough. Sega was still the weak number third in
the North American videogame market, and it had neither the resources nor
the will to make such a desperate gamble again.
The day of reckoning was at hand.
It was time for Sega to set the Dreamcast aside and move
on.
It's
the end of the world as we know it
<01/01/2002 - 03/31/2002> <The sudden and
unexpected death of the Dreamcast>
Danse
macabre
<04/01/2001 - 02/28/2002> Back on 28 July 2001 the International
Data Corporation released a study titled "The Console Wars." It was
an in-depth look at the state of the current home videogame console market
and where it projected consumer trends might go. Among its many
other observations, two are of particular note to the story of the
Dreamcast. IDC predicted that sales projections for all vendors
would fall far short of expectations by the time that the holiday 2001
shopping season came around, which in turn would provide a massive,
large-scale price war among the remaining major players. Closer to
home, IDC predicted that overall videogame revenues during the year 2000
for the home console industry would be at least US$1 billion less than
expected. Both of these predictions came true, albeit in ways that
IDC had not expected .... Even so, at least one of the 128-bit
nextgen players did not remain in the market long enough to see this
happen. The one that started the 128/256-bit nextgen revolution had
long ago become its first casualty. Both Sega and the Dreamcast were
long gone by the time Microsoft and Nintendo began their titanic battle
for seconds in the console market at the back end of 2001
...
*
*
*
*
*
*
*
*
Afterword
It was already beginning to get dark at
the Mexico City Olympic Stadium. It was no less a challenge back in
1968 as it is today,and the grueling pace of the marathon had taken its
toll on the contestants. Many were being helped away to the first
aid stations. The race had already been won over an hour ago and
what spectators who remained were getting ready to leave. Suddenly,
without warning, police sirens rang out and the stadium gates
reopened. A single runner wearing the national colors of Tanzania
staggered inside, limping badly but eyes firmly fixed ahead. He had
torn both his knee and ankle in a bad fall earlier in the marathon, yet he
had insisted upon resuming the race once his wounds had been
dressed. The awed spectators watched as the injured runner, his leg
bloodied and swollen, trailing part of a rough bandage behind him,
resolutely made his way across the finish line and then collapsed in
agony. The crowd came to its feet and roared. He had been one
of the first to start the race, yet John Stephen Akhwari of Tanzania was
the last man across the line. As he was being carried off the field
admist the cheers of the throng, a documentary filmmaker named Bud
Greenspan came up to Akhwari and said, "Why didn't you quit? Why did
you continue the race after you were so badly
injured?" Akhwari's reply is
the stuff of Olympic legend. "I do not think you understand," he gasped to
Greenspan. "My country did not send me 7,000 miles to start this
race. My country sent me 7,000 miles to
finish."
So it appears to be with Sega.
First out of the gate in the 128-bit next-gen way, first to fall, injured
and bleeding, yet staggering on. It still has its goal in
mind: to return to profitibility and resume its place as one of the
premier companies of the worldwide videogame industry. It has made
many drastic changes and altered its entire focus in order to stay alive
and continue doing what it does best - pumping out many of the best
videogames in the business to grace any platform. It will not finish
this race as it started, yet it is determined not to fall by the
wayside. It intends to finish the race regardless, come what
may. Will Sega succeed as
a content provider, selling its wares for a variety of platforms as it
once did of old? Only time will
tell.
I have been advocating the idea that Sega
should become a content provider, providing software for all existing
systems and systems to come such as XBox. Hardware has been such a
drag on Sega. Selling software on one system is to limit your
mobility. Why put yourself to a disadvantage to the Electronic Arts,
TH*Qs, and other companies who have the ability to sell software to all
systems?.... I've been advocating this for more than seven years now and
always felt it was a bit of a folly for [today's Sega] to be limiting
their potential to Sega hardware .... Unfortunately, it took the
situation that they are going through today to make them realize that
they had to make a change.
-
David Rosen, co-founder of Sega
Corporation.
For
more outline info on the last days of the Dreamcast, look here and here!
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