Sega Confirms Work on Mystery Machine, Layoffs
Jan 12, 1998  (MULTIMEDIA WIRE, Vol. 5, No. 6) -- Sega of America
appears to be trying to turn a corner on its loss in the console horse
race by confirming existence of its long-rumored next-generation
platform as it also corroborated significant layoffs at the company.
Sega plans to introduce the new console next year, it said late
Friday. It also says it trimmed 30% of its workforce "to remain
financially responsible in the interim."  Sega officials were not
immediately available for comment.
Sales of Sega's Saturn have lagged behind those of the rival
PlayStation and N64.  Sega is clearly hoping to get back into the
console game by introducing a new platform. The company says it has
begun briefing developers about the new console.  It will probably
cost Sega between $500m and $750m to bring the console to market, says
Electronics Arts [ERTS] Executive VP of Marketing Bing Gordon.
Details about the new Sega system, codenamed "Dural," have been
leaking out ever since MMWIRE discovered the project early last year
in documents Sega's one-time partner 3Dfx Interactive [TDFX] filed
with the Securities and Exchange Commission.  Sega is said to be
working with Microsoft [MSFT] on the new platform's operating system,
which will be Windows-compatible and may be able to run at least some
PC games (MMW, Sept. 12).  GT Interactive [GTIS] CEO Ron Chaimowitz
says Dural will also have more RAM than PlayStation. The Windows
compatibility should make developing for Dural less expensive than
otherwise since developers will be able to use existing PC technology
to build the games.
But Sega can't price the new console above $199 and remain
competitive, Chaimowitz says.  Consoles are currently priced at $149.
Sega's biggest challenge will be to keep consumers aware of its brand
until the new console's arrival, DFC Intelligence analyst David Cole
says.  It can accomplish that to some extent by continuing to publish
titles for PC, he adds.
From:  Silicon Times Report / January 16, 1998 / No.1402
... The hell with the Prime Directive, let's kill something.
--- JetMail 0.99beta22
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