New Sega arcade systems in development

In an annual financial report posted on its official Web site, UK-based Imagine Technologies has revealed that its imminent "high-end next-generation graphics technology that targets arcade, PC, and console" has already been licensed to Sega for use in arcade systems. Imagination is best known for its PowerVR graphics, video, and display technologies, which, in addition to Sega, are licensed to the likes of Frontier Silicon, Intel, Philips, Renesas, Samsung, Sharp, Sunplus, and TI.

The new Sega arcade board will be the company's first since the Dreamcast-esque Naomi board that, in recent years, Sega has shunned in favor of Microsoft's Xbox-based Chihiro boards. A statement from Imagination's Chief Executive Hossein Yassaie suggests that the new Sega arcade boards are expected to ship in early 2005.

"We have made continued progress in the amusement market with existing customers Aristocrat and IGT as they ship advanced products using our graphics technology," reads the statement from Yassaie. "Developments with Renesas/Sammy and the latest Sega partnership are expected to lead to volume shipments in the amusement machine market starting from the second half of this year and early next year, respectively."

We'll bring you more information on the story as soon as it becomes available.