Dreamcast for free via .com deal

Electronics Times, April 10, 2000

Sega of America, in anticipation of increasing competition in the cut- throat video games business, has announced an online gaming package, Sega.com. In a break with convention, subscribers will get a free Dreamcast console and keyboard via a $200 rebate if they sign up for two years.

The service, which will be launched this autumn at a cost of $21.95 a month, will target PC gamers in the hope of wooing them away from their computers.

According to Charles Bellfield, a spokesman for Sega: "The market is all about leapfrogging each other and the consumer is confused."

Sega wants to distinguish itself from its rivals, such as Sony, which have hundreds of millions of dollars in their coffers to spend on marketing. Sega is betting on free consoles and online gaming as the best way to distinguish itself in an increasingly crowded market.

Brad Huang, president and chief executive of Sega.com, said: "In the first two years we will break even. It will be community building."