Sega Enterprises Ltd is warning that a chip shortage from its UK
supplier VideoLogic Group Plc and its partner NEC Corp could affect
sales of its new 128-bit Dreamcast machine, due to go on sale in Japan
later this month. Advanced orders for the new machine have been strong,
with 50,000 units pre-ordered, Sega told Reuters, but the supply of
graphics chips would only be half of the expected volume by the end of
the year. Sega originally said it hoped to sell over one million
Dreamcast units by the end of March 1999, and 10 million over the next
three to four years. Sales outside of Japan aren't set to begin
until the fourth quarter of next year. Sega chose to use the
NEC/VideoLogic technology instead of chips from its original partner
3Dfx Interactive Inc, and only resolved a year-long lawsuit over the
switch back in August (CI No 3,467). The first units are expected to hit
the shelves on November 27. Japanese reports suggest that Sony Corp
might be ready to launch a new version of its Playstation console later
this month, although PlayStation 2 was originally expected to appear in
April of next year. Playstation sales are expected to reach 21 million
units over 1998-9.
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