Sega to license Dreamcast chip

Following Sony's lead, Sega is reportedly ready to begin marketing its Dreamcast 128-bit game console technology to third-parties. At least one writer covering this story assumes that part of the reason for this move, by both Japanese companies, is to head off a similar effort to become the standard for home entertainment centers by Microsoft, readying now to release its own X-Box game console. Sega's strategy, however, differs somewhat from Sony's PS2 plans in that it is betting that narrowband applications will dominate for at least three to four more years. Sony is apparently counting on an earlier arrival of widespread broadband.

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