I don't care what it says -- Sega must revive the Dreamcast
After writing a quick little something here on The Digital Home about my hopes for a second Dreamcast by 2009, a flood of news and rumors hit the Web about the future of Sega.
First, it was discovered that Sega filed for a "renewal of brand" on the Dreamcast name and that was quickly followed with rampant speculation that Sega may be planning on bringing back its venerable console. Unfortunately, the company quickly responded by telling Gamedaily that it "has no plans to get back into the console business" and that the company is "very happy being a platform agnostic company and have moved up the ranks the past three years from #11, to #9, and now stand at #6 in terms of our market share by units among third-party publishers. We like our current strategy and have no plans to change in the middle of this outstanding growth."
Huh?
Am I the only person who thinks this makes absolutely no sense? Sega is proud to be the sixth-largest game developer in the world and wouldn't want to do anything else? Does this company realize that it's competing in an extremely competitive environment and due to the recent merger between Activision and Vivendi, its chances of owning more shelf space are dwindling by the minute?
Sure, Sega has been successful in its software endeavor, but if it really wants to make a dent in this industry again, it should forget about its sixth-place spot on the software side and create the Dreamcast 2. If it doesn't, look for this company to flounder amid the rest of the small developers just waiting to get gobbled up by Activision-Vivendi or EA.
Do you want to know how to "move up the ranks", Sega? Let me explain it to you.
Point 1: You don't need to leave the software business
Why do all of these hardware manufacturers believe that they can't create games for other consoles? Although some may believe it's because of licensing fees and their unwillingness to help a competitor, I don't believe it for one second.
As a software developer, Sega makes a pretty nice profit on its games even though it must pay fees to the hardware manufacturers. Why would it be any different if it offered a hardware solution? The company could pay Sony, Microsoft and Nintendo the fees they require from developers and continue to create games for all platforms. Now, special Sega games like Sonic should obviously be kept on the Dreamcast 2, but all of the company's sports offerings and other popular titles should be ported to other consoles on a case-by-case basis.
Think of the benefits of this strategy: not only would Sega be able to turn a profit on its software endeavors, thus padding itself for any loss it would incur on the hardware, but it would create an opportunity where the company would profit off of each and every console. And from the other hardware manufacturer's perspective, why would they care? A new entrant into the business would probably not maintain a large share of the market in the beginning and they would still be able to collect fees from the sixth-largest software developer in the world.
Simply put, it's a win-win.
Point 2: Think of the hype
Can you imagine the hype surrounding the first Sega console in ten years (assuming a 9/9/2009 release)? Unlike the Xbox 360 and the Playstation 3, the Dreamcast 2 could hold a significant place in the hearts and minds of gamers of all ages.
First off, the older gamers would remember the days of playing Crazy Taxi, Toy Commander, Shenmue and many others on the Dreamcast, while the younger group of gamers who never had the opportunity to play the system and have heard about how great it really was will want to play it as if it's a rite of passage.
And if Sega creates a console that is in the original Dreamcast's vein, but cutting edge, most of the gamers looking for high-quality graphics and an immersing experience should be satisfied.
But more than anything else, can you imagine the excitement surrounding the launch of the Sega Dreamcast 2? I can see it now: "Sega shocks the world -- gets back into console business!" "Sonic to fight Mario once again!" "Sega releases most anticipated game machine in recent memory!"
Sega has the opportunity to unveil a console that could easily become the biggest story in gaming over the past decade. If everyone was shocked when Sega left the console business, can you image the shock when it comes back in? It would be Earth-shattering.
Point 3: Use your history to your advantage
Why do most people want a Dreamcast 2 to hit shelves? It's not because they need innovative gameplay -- they get that from Nintendo. And people most certainly don't need more graphical monsters -- they get that from Microsoft and Sony. Most people want a Dreamcast 2 because of their fond memories playing the first Dreamcast. It's as simple as that.
But for some reason, Sega is unwilling to capitalize on that element of its branding. Obviously most people play Sega games because they offer something worth playing, but couldn't it be said that they also play Sega games because Sega makes them?
If you're any older than 18 years old, do me a favor: think back to when you were playing games as a child. Did any developer besides Nintendo or Sega really jump out at you? I doubt it.
Sega has an immensely profitable image in gaming and ever since it was embarrassed out of the console business, it has refused to capitalize on it. To this day, most people don't recognize Sega as a software developer, they recognize it as a member of the old guard of videogaming that lost its way. Regardless, there is an immense amount of respect for the old guard and I think people truly want Sega to regain that "old-fashioned" mentality.
Call me an Old-Timer or a conservative, but to my mind -- gaming was a much better world ten years ago. And while Sony was around back then and making an indelible mark on the video game industry, it was Sega and Nintendo that always seemed to hold a special place in the hearts of gamers.
And even now, Sega and Nintendo are still there.
Forget software, Sega. You must create the Dreamcast 2.
Don Reisinger is a technology columnist who has written about everything from HDTVs to computers to Flowbee Haircut Systems. Don is a member of the CNET Blog Network, and posts at The Digital Home. He is not an employee of CNET. Disclosure.








Another advantage is that the development kit for such a console could be ported to many computing environments (WIndows, *nix, OSX). The reslutng program would run in the virtual Dreamcast console on any platform (including PCs)
I don't know how you can have Sega look to their history for an advantage. The Genesis was a success, but still lagged behind the SNES. The Saturn enjoyed limited success against the PSX and N64, and the Dreamcast died quickly after the PS2 came out. I don't know what hole in the market Sega would fill. Sure, there are people out there that miss the Dreamcast, but since we have enjoyed the same Dreamcast content on the Xbox/360, PS2/3 and Gamecube/Wii, there really isn't a need for the Dreamcast to come back out. I'm also willing to bet that younger gamers don't even have clue what the Dreamcast is.
Don't get me wrong, the Dreamcast was great. From the VMU, to the included 56K modem, it was a great piece of hardware, ushering in the idea of console online gameplay. But the market has changed so significantly since then, I can't imagine a Dreamcast 2 being successful by any stretch. They can't win just on the warm, fuzzy feelings of nostalgia in the hearts of the fanboys out there.
The Answer: Make games for families, baby boomers and girls
- What Sega needs to focus on this round is what everyone BUT Nintendo is missing. EXPAND THE PIE! Make FUN and INNOVATIVE games for families, young, old, and- yes target FEmales! Think Dance Dance Revolution, Guitar Hero, Wii Sports, Rock Band... Girls love these games! Gamers can play games and not ignore their girlfriends while playing. Its no secret that in the last round (last generation of games) game developers focused on the same tiny market. What happened? We ended up with a lot of games that focused on the same audience, *Males ages 2-34* [ Please see source 1].
What was Sony's mistake?
- One of Sonys mistakes has been talked about time and time again: They missed out on the Male age 2-15 category because parents didn't want to pay so much for consoles. They did an good job with PS1 and PS2 because they did something different. THEY FOCUSED ON OLDER GAMERS! Their focus expanded the 18-34 year old category and then swept up the 2-11 year old category. The cheap DVD playback capability of the PS2 is what led to Playstation to becoming more popular, and is what led to DVD players becoming more common than the VCR (see source 2). All of this expensive blue ray player mess was a catastrophe! This generation they alienated the 2-11 year old category and left it WIDE OPEN for Nintendo dominate and pull in the teen category. Nintendo has all but locked in females, younger males and even made addicts out of the older baby boomers [Please see source 3].
Is there room for a SEGA console?
- Absolutely [ Please see source 4]! There are so many people out there that Sega can target! In the end, this move will bring us more diverse games that I'm sure everyone will enjoy. Its this shift in the gaming market that will drive us towards a singular event that will market the next true generation of video game genres. This would be a great and profitable world for developers, corporate entities and gamers of all demographics.
1. "Average Video Game Console Audience Composition", by Nielson Media Research
http://www.gizmag.com/go/7002/picture/32551/
2. "Penetration of Media Devies in U.S. Homes", Nielsen Researche's Home Technology Report
http://www.gizmag.com/go/6652/picture/30065/
3. "Wii Turns Elderly Into Addicts" "Wii Invades Retirement Home", by Marcus Yam, DailyTech
http://gizmodo.com/gadgets/home-entertainment/wii-turns-elderly-into-addicts-238986.php
4. "Console Universe Estimates", by Nielson Media Research
http://www.gizmag.com/go/7002/picture/32550/
I was a Sega fanboy back in the day, too. But Sega had 4 failed consoles in a row! Sega CD, 32X, Saturn and Dreamcast all were great consoles (I'm still pissed that the inferior PlayStation outsold the Saturn).
So what if the Dreamcast was awesome. I want a DC2, too, but I don't have the money for a 3rd console, and most people think that there are already too many systems this generation. That won't change in 2009, when the current 3 makers will be well into developing their next systems.
Not only do you think that risking the already damaged Sega brand by creating a new console, only to enter an already crowded market with the same name as a famous flop is a good idea, you seem to think that it's the only way to save Sega from bankruptcy!
When is somebody upstairs going to notice your terrible analysis and put you out of *our* misery??