Dreamcast: Modem or Not?

In Sega's April 15 announcement that its Dreamcast would hit shelves in the US on September 9, 1999, for US$199, Sega's Bernie Stolar also mentioned (or reiterated) that the system will have a 56k modem. Almost every press outlet (us included) reported that this was confirmation that the modem would be packed in with the system. Apparently, this is not the case, yet.

On Friday, we spoke with Sega public-relations representative Dave Karraker, who told us that while Sega has announced a 56k modem for Dreamcast, it has not announced whether it will be packed in with the system. It's important to note that the modem has been packed in with the system in Japan since its launch last November (the version sent out to the rest of Asia, however, does not does not include the modem).

As Bernie said at the recent Game Developer's Conference, "When Dreamcast launched in Japan, it shipped with a 33.6k modem. Since the launch, just four short months ago, we have been able to develop new, inexpensive modem technology that allows us to bring a 56k modem to the Dreamcast available for its US launch this fall."

A press release dispersed to the media during GDC stated, "Stolar announced during his speech that a 56k modem would be available for Sega Dreamcast when it launches this fall in North America".

If the modem is not included with the system at that price point, it may be very difficult for that portion of Sega's overall Dreamcast strategy to be accepted. One of Sega's own modem-capable games, Sega Rally 2, is also suspiciously absent from the release-date lists of major retailers. This absence has started the rumor that Rally would be packed with the system along with the modem at a $199 price point. Or, conversely, that the modem would be available separately in a package with Sega Rally 2. You buy Rally and you get the modem. We'll know soon, as Sega is expected to announce its full Internet plans for the Dreamcast at E3 next month.

The modem question is very black and white - it is or it isn't packed in, there's no maybe. If Sega's going to announce a modem - its speed, a price and release date - it should already know whether that price will include one of the system's most important components.

Aside from that, there are a few inaccuracies in Sega's recent press releases worth pointing out:

In the April 15 announcement, Sega states "Sega Dreamcast is also the first console to offer Internet capability." If you'll remember, Sega's own Saturn console offered Internet capability with the NetLink. Gaming via modem on a console was first introduced by the X-Band server. It was offered for both Super Nintendo and Genesis in the 16-Bit days.

On that same release, quoting Bernie's own words regarding the system's $199 price point, "There's never been a next-generation console to debut at such a competitive price." You may remember that the Nintendo 64, while first announced at a price of $249.99, debuted on shelves at $199.99, the same competitive price Dreamcast will have when it launches.