SEGA AND PACE MICRO CONFIRM SET-TOP BOX COLLABORATION
Sega and Pace Micro Technology confirmed they were collaborating on digital set-top box (STB) initiative. In conference call with reporters, Pace Mktg. Dir. Andrew Wallace said deal would make “the entire portfolio” of Sega’s Dreamcast games available through Pace’s already announced “digital home gateway” on on-demand basis. Wallace said initiative would allow consumers who didn’t want to buy dedicated game console to receive “console-quality” games through their digital TV service via a set-top box with built-in 40 GB hard disc drive (HDD). Pace said HDD also would act as “jukebox” allowing games to be transmitted by wireless to and played on portable, hand-held devices. Wallace said box would create new opportunities for broadcasters through additional revenue and marketing opportunities.
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HDD will have ability to “store about 60 games,” Wallace said. He said titles could be delivered digitally in about 3 min. per game, which can be selected by customers via an electronic program guide (EPG). Sega of America (SOA) Content Strategy Exec. Vp Shinobu Toyoda declined comment on reports that indicated the company was planning to stop manufacturing Dreamcast consoles by the end of March.
Role of Sega in deal with Pace will be strictly in licensing its hardware architecture technology and supplying game content, Toyoda said. Wallace said he expected company would ship set-top box with gaming capability next year. He said company was targeting 50% of homes in the U.S., but no agreements for a set- top box incorporating games had been signed with cable and satellite service providers. Boxes also will be compatible with other digital TV platforms, including digital terrestrial and xDSL, Pace said.
Pace has signed deals to provide STBs with personal video recorder (PVR) capability to Comcast and non-PVR STBs to Time Warner, but Wallace said Comcast and Time Warner deals didn’t include on-demand game functionality. However, he said Comcast boxes used same underlying PVR technology as one in Sega deal. Pace also builds STB with 40 GB hard drive for BSkyB in U.K. Pace’s home gateway with integrated PVR capability has yet to be rolled out to consumers, but company said it would be this year by “a major U.K. broadcaster.”