Sega ended months of speculation by confirming that it plans to scrap its Dreamcast video game console and focus on making software for systems made by companies such as Sony and Nintendo.
Sega said it will halt Dreamcast production immediately and slash the U.S. retail price to $100 from $150 to clear out remaining inventory. Sega plans to make games for other video game systems as well as handheld computers made by companies such as Palm.
Shopkeepers can ultimately decide the system's retail price, said Charles Bellfield, a spokesman for the company's U.S. unit. The system should be available throughout the year, he said.
The move ends Sega's costly bid to return to prominence in the game console business. The company, once No. 1 with its Genesis system, is on track to lose money for the fourth year in a row. Now Sega hopes to cash in by taking its library of critically acclaimed games to more popular systems.
The company sold a lower-than-expected 3 million Dreamcast units in the United States in the past 15 months, even though Sony's consoles were largely out of stock on component shortages.
Among the first Sega games to appear for other systems will be racing game "Crazy Taxi," which will be published for Sony's PlayStation 2 by Acclaim Entertainment in late April.
Sega will publish its first game for PlayStation 2 by the end of August. The company has also agreed to make games for Nintendo's handheld Game Boy Advance and is in talks to publish games for Nintendo's GameCube and Microsoft's Xbox, both of which are scheduled for introduction later this year.
Sega will sell to retailers its remaining inventory of Dreamcast systems by the end of its fiscal year on March 31.
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