New set-top box to play Dreamcast games

Sega and UK-based digital TV technology provider Pace Micro Technology have confirmed that the Dreamcast technology will be integrated into Pace's new line of set-top boxes. The device, which is available to cable, satellite, and xDSL providers, will support Sega's growing library of Dreamcast games. Additionally, the set-top device will include a 40GB hard drive that can be used to download games and have access to them on a pay-per-play basis or for a fixed period of time. The hard drive can also act as a relay device, transmitting game content to wireless handheld devices.

"Our announcement with Sega is a world first," said Andrew Wallace, marketing director for Pace Micro Technology. "Together, Pace and Sega will offer digital broadcasters a valuable new service for their subscribers, as well as an important source of additional revenues. For Sega, integrating games into set-top boxes expands its market potential beyond conventional games consoles. Existing users now have a new way to access games, and new users will be attracted since anyone with the HDD-enabled home gateway box will have access to Sega's own extensive and licensed games portfolio."

"With the advancement of semiconductor and network technologies, set-top boxes, and digital home appliances, the new concept of accessing information from a single device in the living room will become increasingly popular," commented Hideki Sato, representative director and vice president of Sega. "Entertainment content, most of all games, is becoming the most attractive and sought after element in the expansion of the home network."

Both companies will market the Dreamcast-enabled set-top box to digital providers worldwide. Sega plans to make both current content and its library of already-released Dreamcast games available to users of the Pace set-top device. This announcement is another steps in Sega's plans to provide games for multiple formats. In June of last year, the company announced a partnership with Motorola to provide games for wireless phones, pagers, and PDA. Additionally, Sega confirmed last week that it is in negotiations to release games on the Sony PlayStation 2 and the Nintendo Game Boy Advance. Industry speculation further suggests that the company plans to release games on the Microsoft Xbox.