Dreamcast Logo
567The Dreamcast is a video game console which was released by Sega in November 1998 in Japan and in late 1999 in other territories. It was the first entry in the sixth generation of video game consoles, preceding its rivals: Sony PlayStation 2, Microsoft Xbox and the Nintendo GameCube.
Dreamcast sales were positive during launch, but when Sony announced the PlayStation 2, sales of the Dreamcast plummeted. When the PS2 was launched, it became very popular, and the Dreamcast lost much of its momentum. Later, after the Xbox and GameCube were announced, Dreamcast sales continued to drop and Sega came to the realization that it did not have the resources to compete. The Dreamcast was discontinued as early as March 2001, which marked Sega's withdrawal from the console hardware business all together.
Support of the system continued in Europe and Oceania until the end of 2002, while in Japan, consoles were still sold until 2007 and new licensed games continued to be released. 10.6 million units were sold worldwide, as of 2002.
Despite its short lifespan, the Dreamcast was widely hailed as ahead of its time. It saw the release of many new game series which have been considered creative and innovative, such as Crazy Taxi, Jet Set Radio, and Shenmue, which was the most expensive game produced at the time. The console itself is still held in high regard for pioneering online console gaming; it was the first console to include a built-in modem and Internet support for online play. To date, the console is still supported through various MIL-CD independent releases. The reason why it did not sell well was partly because its rival, PlayStation 2, had a built-in DVD player, which really boosted the PS2's success. Piracy was another reason; as the media discs the Dreamcast uses could easily be copied. Another reason may be that the failure of the Sega Saturn - Dreamcast's predecessor - may have caused the Dreamcast to lose momentum.
The Dreamcast had a 56K modem, and could be used to access email and the internet when used with the keyboard, which was sold separately. It also played audio CDs, and had a Visual Memory Unit (VMU), a miniature portable game system that fit inside a controller.