Press release: 2001-02-01: Pace softens Sega blow

This is an unaltered copy of a press release, for use as a primary source on Sega Retro. Please do not edit the contents below. Language: English Original source: www.theguardian.com (archived)

Sonic fans will get a kick out of a set-top box, says Chris Price


Chris Price

Thu 1 Feb 2001 02.28 GMT


As troubled games maker Sega prepares to announce its official withdrawal from the unprofitable games console market, Pace hopes to soften the blow to die-hard Sonic fans with the launch of the world's first digital set-top box with integrated Sega games console.

Set to hit the streets later this year, the new generation set-top box will combine conventional digital TV services with full Sega Dreamcast functionality. The only difference is that the innovative Pace unit will download games directly on to its integrated 40GB hard drive and will not incorporate a CD-rom drive for loading games from disc. However, the original Dreamcast handset will be provided for full interactive gaming.

Up to 60 games can be held on the set-top box's hard drive but additional games could be downloaded either via a conventional integrated dial-up modem or a broadband ADSL/digital cable connection in minutes. Any Sega Dreamcast game could be played on the set-top box but, unlike today's console-based market, the line-up will depend on the broadcaster. Demonstrated in New York this week was a prototype box with Sonic 2, Crazy Taxi and Ferrari 355 games stored on its hard drive.

Pace is in talks with broadcasters in the US and Europe and hopes to roll-out Sega Dreamcast-equipped boxes later this year. UK satellite broadcaster SkyDigital and cable giant Comcast in the US have announced plans to introduce Pace-manufactured advanced personal video recorders with built-in hard drives, although neither has committed to online gaming.

When gaming services are launched later in the year it is expected that digital TV viewers will be able to access them on pay-per-play basis, like the pay-per-view arrangement for watching Hollywood movies on SkyDigital or ONdigital. It may be possible to buy a "season ticket" to play certain games for a longer period or buy them outright. Importantly, users will be able to choose games "on demand" from the set-top box's hard drive using the integrated electronic programme guide in much the same way as watching a digital TV programme.

According to Pace's marketing director, Andrew Wallace, the Sega gaming set-top box will have wider appeal to users than today's games consoles. "It will attract a new market of casual gamers who typically spend less on gam ing than today's enthusiasts." However, he admits that saving money is a prime motive behind companies such as Sega switching to direct distribution via the TV set.

"Online gaming also benefits games companies because it is a cheaper means of games distribution than selling the discs." Sega already offers online gaming for PC owners via its Sega.net website.

But Pace insists the move isn't just about cost-cutting and will benefit enthusiasts. These include multi-player gaming between set-top box owners and the integration of TV broadcasts with interactive gaming. "Imagine if you could show motor racing on TV, then invite viewers to play the game on their TV set for £3 a time. You could offer prizes to gamers who achieve the best times," says Wallace.

Also under development is a new generation gaming set-top box that will incorporate full home networking functionality. Using conventional digital electronic cordless technology (DECT) from home telephones, games will not be confined solely to the TV set but will be distributed wirelessly to any peripheral device in the home such as a web pad or personal digital assistant.

The Sega set-top box represents the latest move by the games maker to shift its business from the unprofitable hardware market. The company also announced that it intends to develop games for other platforms, including rival Sony and Nintendoconsoles and GSM and third-generation mobile phones. Later this year Sega plans to licence its Dreamcast architecture to set-top box manufacturers across the world.

For Pace the official announcement of a non-exclusive partnership with Sega is welcome. Last week a UK cable operator, Telewest, announced it is to end its exclusive two-year set-top box contract with the Shipley-based firm in March and look for an additional set-top box supplier. Developed over a 12-month period, the Pace-branded Sega set-top box is the result of collaboration with two UK companies: Imagination Technologies and the Sega-owned Cross Products Limited.