Dreamcast Timeline: April 1999 to February 2001
The chronicle traces the history of the Dreamcast in news and interviews. The period from April 1999 to February 2001 is presented
April 1999
Sega announces worldwide prices for Dreamcast
Sega raises the curtain on the new console a little further. Around the world, the various subsidiaries are announcing the price and release date for the Dreamcast. While the dream date of 9/9/99 is being held in the US, the Dreamcast will go on sale in Europe two weeks later on September 23, a statement said. As announced by Sega Germany, the price in this country will be 499 marks and thus between the price in Great Britain and the USA.
Aug 1999
Dreamcast
the Dreamcast set a new pre-sale record for video game consoles in August 1999. Around six weeks before the US release, there were already 200.000 pre-orders. The record set by Sony Computer Entertainment at the time of the PlayStation launch in 1995 (more than 100.000 pre-ordered units) was thus clearly surpassed. Sega expects to sell more than 400.000 Dreamcast units within 30 days of release, one million units by the end of the year and 1.5 million units by March 31, 2000 in the US.
Four weeks before Dreamcast launch, SEGA changes the leadership
Sega of America gets a new boss. Toshiro Kezuka replaces Bernard Stolar, who no longer works for Sega, as Vice-Chairman and COO. There is no justification for the change in leadership around four weeks before the US launch of the Dreamcast. In principle, Sega refuses to comment on personnel decisions. According to rumours, the Japanese management wanted to get rid of Stolar due to too many differences of opinion. This is Stolar's second time leaving or having to leave a company just before launching a new console. In an interview with MSNBC, Stolar described his departure from Sony Computer Entertainment America (SCEA) as a resignation. Stolar also left SCEA a month before the PlayStation launch.
Nintendo and SCEA reduce hardware prices
A few weeks before the US launch of the Dreamcast, Sega's two main competitors, Nintendo and Sony Computer Entertainment America (SCEA), have announced price reductions for Nintendo 64 and PlayStation hardware, respectively. Effective August 23, both consoles will be available for just $99.95. The "Star Wars" N64 bundle drops to a retail price of $119.95. Officially, however, the price reduction is not associated with the Dreamcast launch. SCEA explains that the $99 pricing has always been part of the company's strategy to bring the leading system to a wide audience. And Nintendo also argues that by lowering the prices, the system is accessible to all consumers.
Sega postpones Dreamcast launch to October 14
Sega postpones the European launch of its Dreamcast by three weeks. The new console will therefore not be available in stores on September 23, as was previously the case, but on October 14, 1999. The Internet service is still being tested, the company justifies.
Sega of America: 300.000 Dreamcast pre-orders
Sega of America announces a new interim result for the ongoing pre-orders for the Dreamcast. Accordingly, the number of pre-orders has already reached the 300.000 unit mark.
Sep 1999
Dreamcast is released in the States
The Dreamcast is launched in the USA. Three weeks before the European release, the second test for the new console begins after the Japanese release. Sega of America (SOA) aims high. Within the first 24 hours, sales at retail prices are expected to be close to $45 million. The Dreamcast is priced at $199 in the US.
Dreamcast generates $97 million in sales in 24 hours
In the comparison drawn by Sega, the Dreamcast left the film "Star Wars Episode 1: The Phantom Menace" well behind. While the latest "Star Wars" film has a box office value of "only" $28 million on the first day after its theatrical release, the Dreamcast has "brought in" almost $98 million within the first 24 hours of sales. This would clearly exceed the expectations of Sega of America. Sega expected around $45 million in retail sales. Chris Gilbert, Senior Vice President Sales at Sega of America, also announced that he would like to review his own forecast of one million consoles sold by the end of the year.
372.000 Dreamcast consoles sold in just four days
Sega of America continues to be successful. According to newspapers, 372.000 units had already been sold after four days. Including software sales, Sega of America thus achieves sales of $132 million.
October 1999
"No one can stop the Dreamcast's success"
In the US, Dreamcast got off to a flying start. In Europe, Sega's new console appears with a three-week delay. In a conversation, Thomas Zeitner answered questions about the effects of the postponement, the reactions of competitors and the successes to be expected in Germany.
Sega: 100.000 pre-orders in Europe
According to Sega, the new Dreamcast console has been launched in Europe with more than 100.000 pre-orders. The number came about through various trading partners who would have accepted pre-orders in their outlets and their online sites. In addition, a large number of pre-orders have also been received on the Dreamcast homepage. Sega has set up the possibility of online ordering there from September 1st.
185.000 Dreamcast sold in four days
According to Sega, it sold around 185.000 Dreamcast units in Europe within the first four days of sales. More than 100.000 units were sold on the first day alone, mostly as pre-orders. Sega Germany let it be known that in Germany within the first 24 hours a turnover of around 22 million marks was generated according to retail prices. This includes both console and peripherals and software sales.
Dreamcast generates 80 million euros in sales
Sega has announced further figures for the start of sales of its Dreamcast console. 350.000 software units and 280.000 accessories were sold. This means a turnover of 80 million euros at retail prices throughout Europe. Sega is also reporting the first results from the area of online use: in the first hours of the weekend's launch, more than 25.000 consumers registered. Sega partner British Telecom registered 1.2 million online minutes over the weekend.
Nov 1999
Sega: Dreamcast market leader in October
Referring to GfK surveys, Sega Germany sees its new Dreamcast console as the market leader in October 1999. Although the Dreamcast was only on sale for two weeks in October, 60 percent of retail sales in the home console sector were generated with it. "Especially with regard to the Christmas business, we have created an excellent starting position for ourselves" says Thomas Zeitner, General Manager Sega Germany.
December 1999
Sega takes stock after DC's European
launch Sega takes stock again two months after the launch of the Dreamcast in Europe: Since then, more than 500.000 units have been sold. Including software and peripheral devices, a trading turnover of 225 million pounds was generated. The online use is also pleasing. Sega speaks of more than 150.000 Internet registrations. "German players want Dreamcast, and with their support we were able to make a significant contribution to European success," sums up Thomas Zeitner.
January 2000
Dreamcast hits $1.5 million margin in US market
Sega of America breaks $1.5 million sales margin in the States with Dreamcast. The magic number was reached on December 24, 1999, three months earlier than the company itself had expected. Chris Gilbert, senior vice president of sales, particularly emphasizes the short time between the achieved sales of one million and the renewed success of 1.5 million copies sold. There are only 30 days between the two milestones for Sega's Dreamcast.
February 2000
Sega presents Dreamcast camera
Sega presents an accessory at Milia 2000 in Cannes, France. CEO Shoichiro Irimajiri presents a digital video camera called "Dreameye". The resulting images or film sequences can be put online via the Internet-enabled console, among other things.
New interim results
Sega Europe takes stock about four months after the release of the Sega Dreamcast. After that, almost 700.000 units were sold in Europe. The development of the online service is particularly pleasing. More than 30 percent of all buyers used the free online service. In total, more than 200.000 users have registered. This would make Sega one of the fastest growing Internet Service Providers (ISP) in Europe.
March 2000
J.-F. Cécillon, Sega: "One million users by Milia 2001"
Sega Europe used Milia 2000 not only to announce Dreameye but also to announce an agreement with Lionhead Studios. Jean-François Cécillon, CEO of Sega Europe, summarizes the console's success as well as future plans and expectations.
April 2000
Sega of America plans radical online strategy
"These are radical changes, but radical changes were necessary" comments a US industry analyst on Sega of America's (SoA) plans that have become known. The video game manufacturer starts its own Internet division with SegaNet in the USA and thus its own online service.
May 2000
New man at Sega's top management
Shoichiro Irimajiri is stepping down as Sega President. He will be succeeded by Isao Okawa, a board member of the information technology parent company CSK. The reason for Irimajiri's resignation is that Sega was far from achieving the sales figures for the Dreamcast that it had aimed for in the second half of the financial year and so had to post a loss in its corporate accounts for the third time in a row.
June 2000
Sega launches price offensive
Sega is implementing the price offensive announced at E3 for the Dreamcast. Buyers in the USA can save up to $50 if they sign up for a one-month online user contract via the SegaNet website at the same time. With a two-year contract, Sega even grants a bonus of $200, which pretty much corresponds to the purchase price of the console.
July 2000
Dreamcast's copy protection cracked
The Dreamcast's copy protection has been cracked. A group of programmers calling themselves "Utopia" were able to crack the code. Burned to a CD-ROM, the sequence alters the console's memory chip. The boot CD also allows illegal copies to be played. Sega itself confirms that it is possible to circumvent the copy protection. In cooperation with the responsible authorities, a tough approach against any product piracy is announced.
Sep 2000
Thomas Zeitner: "Are we the ones who have to fight?"
On September 8, 2000, Sega invites industry and trade partners to a big party in Düsseldorf. But before that, there is the latest information about Dreamcast. In an interview, Thomas Zeitner, General Manager Sega Germany, gets to the heart of the key facts again.
October 2000
Dreamcast sales increase
Shortly before the US market launch of the PlayStation 2, Sega can increase its Dreamcast sales figures in the States. According to market researchers at PC Data, weekly sales increased by an average of 156.5 percent between July 23 and September 30. Based on the respective sales figures, Sega thus occupies second place behind Sony. Now in third place is Nintendo. According to PC Data, the reasons for the Dreamcast boom are the price reduction of the console by 50 dollars and the introduction of the Internet discount.
1 Year Dreamcast in Europe
On October 14, Sega celebrates the one year anniversary of the Dreamcast's launch in Europe. Dreamcast is on target in Europe. To date, more than a million units have been sold in Europe. In addition, more than 2.5 million software units went over the counters of European retailers. And last but not least, Dreamarena has exceeded 400.000 registered users.
Sega anticipates losses
Contrary to previous forecasts, Sega anticipates massive losses for the 2000/2001 financial year. Instead of the originally forecast profit, the consolidated net result in the group will be in the red. The expectations for group sales are also scaled back. Responsible for the revision are above all recent price reductions for the Dreamcast. These alone would have caused a loss of 18.5 billion yen, said Sega.
Sega is increasingly focusing on online and content
Sega wants to realign its business focus in the future. With the aim of returning the company to profitability, Sega is now increasingly focusing on online and content. This also included developments for other platforms, such as PCs and mobile devices. For Sega, the online service SegaNet is a "good barometer for sounding out the potential in the online segment". At the end of the current financial year, Sega hopes to have around three million members. The installed base of Dreamcast owners to date is 5.98 million worldwide, including 930.000 in Europe.
Nov 2000
Dreamcast conquers India
Sega announces that it will launch the Dreamcast in the Indian market. In general, Sega assumes that business will be very good on the subcontinent. The optimism is nourished by the hope that Dreamcast will be popular with consumers in India primarily as an "Internet terminal". In the first twelve months, the plans foresee 120.000 units sold. By the end of 2002 there should be around one million copies.
December 2000
Sega: Cécillion goes
Sega Europe boss Jean-Francois Cécillon takes his leave at the turn of the year. This decision is not justified. Cécillon was with Sega for two years and has so far met all of the company's goals - the sale of one million Dreamcasts and three million software units, as well as 400.000 registered users for Dreamarena. Some of his responsibilities in the area of strategic partnerships will be taken over by Sega boss Okawa.
January 2001
The end for the Dreamcast?
The first rumors take their course: as reported by Japanese media, citing informed circles, Sega is planning to stop producing its Dreamcast games console. Instead, Sega wants to concentrate on developing and selling software. A spokesman for Sega emphasized that nothing had been decided yet with regard to the production stop. However, a restructuring is being considered for April, with the cessation of Dreamcast production being an option. The Sega share price rose by around 18 percent in response to the reports.
Pace integrates Sega platform
Pace Micro Technology, US supplier of set-top boxes, signs an agreement with Sega. Accordingly, Pace will integrate Sega's gaming platform, i.e. the technology behind Dreamcast, into its set-top boxes. This would make a variety of new services such as play on demand and electronic distribution of games possible. However, existing content such as electronic program guides could also be enhanced by Dreamcast's 3D technology. For the time being, however, only American consumers would benefit from the partnership between Sega and Pace. The licensing of the technology to manufacturers of set-top boxes is treated as a central point of the reorientation.
Sega ends hardware business
After weeks of speculation, Sega has finally drawn a line: Dreamcast production will be discontinued in March 2001. In the future, Sega wants to focus on the development and marketing of game content. Titles for PlayStation 2 and Game Boy Advance have been announced. Other platforms, such as the Xbox, are under discussion. But the Dreamcast owners should continue to be supplied with new software. In addition to the classic console business, Sega also wants to supply other markets with content. There has been a contract with Motorola for a long time. In addition, an agreement has now been concluded with Palm. And the technology behind Dreamcast should continue to be used. Also recently, Sega signed an agreement with Pace Micro, a manufacturer of set-top boxes.
February 2001
Dreamcast prices drop
Sega has dropped the price of the Dreamcast console from $149 to $99 in the US. Sega of Europe follows, lowering the price of the Dreamcast in the UK to £99. The new price applies with immediate effect. According to the company, the price reduction reflects the support that Sega intends to continue to give to the Dreamcast platform. As previously announced, Sega plans to release more than 30 titles for the platform in 2001. Sega Germany has not officially announced a price reduction at this point in time.
THQ Drops Prices on Dreamcast Games
THQ Entertainment is one of the first publishers to start dropping prices on Dreamcast games. The non-binding sales price of Dreamcast titles that have already been published will be reduced to around 40 marks. “Evil Dead: Hail To The King”, which will be released at the end of May, will remain unaffected by the reduction, according to Kaarst. "THQ would like to actively support retailers in counteracting the current unrest in the Dreamcast area" comments Ralf Gronwald, authorized signatory and sales manager at THQ. Gronwald hopes that the price reduction will "boost the sales of the titles again" and also gives a positive signal for the Dreamcast.
