For many Sega fans, the dream passed away when Sega made the announcement that they would discontinue support of the Dreamcast at the end of the 2001 fiscal year and become a multi-platform third party developer. Still, those hardy Dreamcast fans kept the dream alive with the hopes of playing Yu Suzuki's sequel to Shenmue this Christmas. No doubt, many of you are angered, saddened or feel a combination of the two with the recent announcement that Shenmue 2 is canceled and has become an Xbox first party title to release in Fall 2002. Is the dream dead? Can we have faith in this new Sega? We got a chance to speak with Charles Bellfield, Vice President of Strategic Planning and Corporate Affairs for Sega of America, and while he is usually a very jolly fellow, he was noticeably frustrated about the recent announcements. Nonetheless, he's hopeful that Dreamcast fans will understand the decision and will keep their faith with Sega's new direction:

IGNDC: Hi Charlie

Charles Bellfield: Hello Anthony.

IGNDC: So Charlie, I know you want to get it off your chest, so go ahead...

CB: Thank you... here goes.

First off, I feel accountable to the Dreamcast owners. This decision was predicated by many sleepless nights of "are we letting down our Dreamcast consumers" as Dreamcast consumers have been the core of this company. I started working on Dreamcast August of 1995 and it's been our lifeblood since then. The unit [the Dreamcast] is still selling quite well and we'll sell through all four and half million units by just after Thanksgiving. We're very glad that we are able to get a great product out at a great price and we're still shipping great stuff when it comes to software.

Canceling any game for Dreamcast today is a really hard decision and it's not just about our financials; it's about our responsibility of being leading company in this industry and making a promise and going through with it. And I don't think anybody can criticize this company - from Peter [Moore] downwards in the US or Kayama-san in Japan - that we haven't fell through with our commitments. In saying that, unfortunately we do need to make the right decisions for this company, particularly when you look at the amount expenditure and the development teams we're supporting, we need to focus on what is the right decision for our development team and what the right decision for our content, and at the point we have decided enter into a relationship with Microsoft for Xbox for versions of Shenmue 2 and Phantasy Star Online for Xbox.

It isn't necessarily a cancellation of the Dreamcast version of Shenmue 2; in fact, Shenmue 2 has shipped in Japan already and is also going to be shipping in Europe in the new year. But here in the U.S., it will not be shipped for Dreamcast. Microsoft will be picking up the title as a first-part sold and distributed title; it will still be sold under the Sega brand. But Microsoft will be funding the marketing program for Shenmue 2. We expect and we know under the terms of this relationship that Microsoft will put a marketing program behind it that a game like Shenmue 2 and a developer like Yu Suzuki will expect to get from such a great franchise. You will see some really compelling marketing programs from them under the Sega brand for Shenmue 2 next year.

As for Phantasy Star Online, I will also be able to let you know that will be coming to Xbox, it will developed by Sonic Team themselves and Yuji Naka, and it will be available through Microsoft via a pack-in for Microsoft's online initiative for late spring/early summer onwards. It will also be available separately as a Sega of America published game.

I can also announce to you - we will be announcing on Friday at TGS - that PSO will be coming to the PC here in North America and we are currently working with Microsoft in that strategy for the distribution as well as the online support servers with Microsoft for the PC market.

As Sega continues its platform agnostic strategy here, our direction is to work with the right partners that allows us to bring our content to consumers as quickly as possible with the right support behind it. And there are some instances, such as our relationship with Sony in Europe and with Infogrames, that allows us to do that with the lowest cost possible. Shenmue 2 is an example of working with Microsoft with them and their marketing budget to bring that title to the US market with a respect to marketing programs it deserves and a great partner. Unfortunately that would mean there will be a cancellation of the Dreamcast version and Shenmue 2 will ship in the Fall of 2002 for Xbox.

Those titles, Shenmue 2 and Phantasy Star Online, will be designed to take advantage of the Xbox architecture, technology and specifically its exclusive features like the hard disk drive and the broadband network capabilities. At this point, I can't add any details as we're holding back to announce those plans on a later date. Both Yu Suzuki and Yuji Naka are heavily and closely involved in directing both projects for Xbox and they will continue their revolutionary gameplay mentality with these games on the Xbox platform. I can confirm that Sega will continue to support the Dreamcast with the release of NBA 2K2, Tennis 2K2, Bomberman Online, and NHL 2K2. Therefore continuing our commitment that we made in our announcement back in January, that we will continue to sell Dreamcast games for another twelve months. And that is still very much our plan and we'll be expediting our greatest hits series - the Sega All-Stars - and bring the content to our consumers at the lowest possible price to make sure as many Dreamcast owners get their hands on to great values in Dreamcast software.

IGNDC: First off, about Phantasy Star Online for Xbox and PC, is it going to be a new version or is it based off the recent Version 2 Dreamcast version?

CB: It's not necessarily an extension of the game as currently seen on the Dreamcast.

IGNDC: Will Dreamcast users be able to play with Xbox or PC users once they get online?

CB: I think you'll understand that the time-frame difficulty when PSO ships for Xbox and PC, and that the Dreamcast version has already shipped. Now, I'm not saying that will not be possible, I'm saying understand that we'll be focusing on online gamers on those platforms initially. I really can't answer that, and I don't know technically if that's feasible.

IGNDC: Because chatting is such a big feature in Phantasy Star Online and Microsoft hasn't produced a first party Xbox keyboard utility, is Sega planning to support PSO players on the Xbox with a keyboard?

CB: A key point in the game is collaboration and communication; it's critical to the game. Just to say both Microsoft and Sega, as well as Naka-san personally, are looking at solutions to that problem. There are no plans at the moment; whether or not it's a voice chat feature or keyboard chat feature has not been determined.

IGNDC: Why Shenmue 2 and PSO? Not to say those titles won't succeed on the Xbox, but obviously there's a huge fan base for the Shenmue series on the Dreamcast.

CB: Firstly, there's a synergy between Xbox owners this time next year and also the Shenmue 2 followers; we believe there's synergy there. Secondly, I think that platform is really missing some crucial killer content particularly in the RPG market and we're potentially filling that gap. Certainly, Microsoft is a great partner to work with, in terms of developing integrated marketing programs between us and them. It's pretty clear that the Dreamcast consumer base today is not as proactive as we necessarily like. Specifically when you look at the sale premium priced games today at $39 or $49 dollars, they are not selling to the extent that would necessarily need to make Shenmue 2 comfortable on the Dreamcast. We need to have a strategy that takes Shenmue beyond the Dreamcast platform. That is critically important for the cost we put behind Shenmue 2 already. So we need to look at a platform strategy for Shenmue after the Dreamcast existence. The compatibility and the ease of portability, as well as ease of development and the technical features of the Xbox, combined with Microsoft's willingness to work with this title was obviously a key reason for bringing that platform. I'd give you a full-winded answer but YOU know the answers as well as I do.

IGNDC: Yeah, I know, but...

CB: But if you want me to give you a succinct answer, fine! Basically there is so much heritage, history, and technology sunken into Shenmue and we want to continue the franchise.

IGNDC: I completely understand, Charlie

CB: If the Dreamcast would continuing today, we wouldn't be having this conversation. But it's not and the reality is that we need to make the right decision for taking our content into next generation platforms and get that to consumers as quickly as possible.

IGNDC: With the announcement of these two titles, that gives the Xbox the most Sega titles of all the next generation consoles. Is there something going on or is this a sign that Sega and Microsoft are working on a closer relationship that we might here about sometime in the near future?

CB: I would say to you that Sega's future is very much independent third party provider of content. Our expertise is across the board, throughout all of the platforms. We look at these platform companies as an opportunity to get to a gaming audience. We believe Xbox, technically has some great opportunities for us, particularly the hard drive, the graphic performance, and network capabilities. Game Cube, without a doubt, is a great product; you cannot doubt the cost, the size, the target market, and the fact that Nintendo is a great game company. Game Cube gives us a great opportunity with the likes of Sonic, for example, Sonic Adventure 2 for Game Cube. Plus a whole sweet bunch of other stuff that we haven't announced yet - I know what it is and you don't, ha ha...

IGNDC: Thanks Charlie.

CB: That's right. Game Cube is a great vehicle to get us to another gaming audience. PlayStation 2 has a massive install base and you can't doubt opportunity for us there. And you know Yu Suzuki is working on Virtua Fighter 4 and that is a great game on PS2 as well. I'm responsible at looking at title line-ups for the next fiscal year and the year beyond, that's one of the key jobs I have here as I watch to see how this campaign is going. I can tell you very clearly, our software lineup for fiscal 2003 is equally split between all of the platforms. We're pretty broadly spread between the three platforms. The difference here is that a significant amount of our Xbox content is actually shipping earlier than PS2 content clearly because of the ease to develop for that platform. And here's a new piece of news that won't be in a press release but it will be released in a keynote speech at TGS. We'll be announcing that we are developing, based on the Xbox architecture, a new arcade unit that will utilize Xbox's core inside some new arcade games from us. We also announced that deal with Sony as well. We're just balancing our eggs in our basket; we got multiple tactics with multiple platform companies across all of their content with all of our development teams. And you know Yu Suzuki isn't going to just port Shenmue 2 to the Xbox...

IGNDC: Oh, I already assumed that, given the Fall 2002 release date, he's going to use every processing power of the Xbox... just like he did for the Dreamcast.

CB: You know, it angers and saddens me. The Dreamcast is such a great product when you consider price point, the quality of games... it's just a bummer to me that the Dreamcast didn't see the light of day in the business and not enough people bought this system. I say this because I'm genuinely feel bad about the situation; I'm sad that it hasn't taken off the way we hoped it had and how responsible we feel towards the Dreamcast owners.

IGNDC: There have been rumors about this for quite some time and I can't think of a better time to ask it. Is there another Dreamcast price drop planned?

CB: You know what, Anthony, the Dreamcast is a great deal and we're on allocation at the moment. We've had to limit our shipment to retailers because they've ordered more than we've got. And here's something special; the last one that ship, there will be a very special last Dreamcast and I would love to know who's getting that one. That will ship before Christmas and there's going to be a momentous occasion when the last batch of Dreamcasts ship.

IGNDC: Well give us a hint, Charlie... is it going to be a golden Dreamcast? Will it have like $1000 bucks hidden inside it or something?

CB: I'll just say that last Dreamcast from Sega is worth way more than gold. (smiles)

IGNDC: Ahhh, Charlie, like always, you're words are so sweet. I guess my only other question and it's more for those Dreamcast owners that have been waiting for Shenmue 2 because you know there's a whole lot of them...

CB: How do you think I feel?!?

IGNDC: Judging by your voice, not very good. But let's just say, some Dreamcast fan recognized you on the street, came up to you and screamed how could you do this to us Dreamcast fans... how would you respond to them?

CB: I think the first thing I would say is, to any Dreamcast owner and potential Shenmue 2 purchaser, the number one importance for Sega is building the right business so that we, as a company, can continue to deliver the content you expect to get from us - the likes of Shenmue for the future. And we need to focus on making sure we're making the right business decisions and... hold on a sec. . We just finished preparing the statement we're going to give so I'm giving a off-the-cuff, personal answer and I believe in this. We need to make the right decisions that allows us to continue making these games, creating this type of content, and pushing the boundaries. It doesn't matter if it's Shenmue, or Seaman, or Sega Sports game online, or Echo, or some of the ones we've talked about. We have a burning ambition and a desire to make great games and to do something that no one is doing. And that is the core of us; Sega is, at a heart, a development company. We're not an EA, we're not a Sony, we're not a Microsoft, and we're not even a Nintendo. Our core has always been at video games. We have a passion and we have thousands of individuals who dedicate their life in making these games; if they wanted an easy life, they wouldn't work here. They know full well that working at Sega gives them an opportunity that no other company gives them. Our staff are our number asset.

Our concern at the moment, the forecast that we got back from retailers for Shenmue 2 on Dreamcast wasn't big enough to make this title popular for us; it wasn't covering our cost by miles! And Sega can't afford to continue to go down the path in coveting games that makes us unprofitable. By working with Microsoft, we have a great partner that's going to put in a lot of expertise in development and a great marketing program to make this title successful by using the Xbox technology to improve the quality of the game. I hate the fact we're going to have to delay it by a year, but the game will be stellar, it will be brilliant, and I'm much more interested in focusing on building a business to continue making this type of content for the next generation of platforms going forward. And that is a passionate plea from the soul of Sega; that's not me as a spokesperson spinning you, that's what we believe in. And I'm saying this with passion to you because that's what we believe in and that's the truth behind this. There's no other hidden truths here, that's the real reason.

IGNDC: Okay Charlie

CB: You know I'm passionate about this

IGNDC: So are all the Sega fans out there, Charlie... let's hope they don't lose their passion. Thanks for your time.

--Anthony Chau, IGNDC





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