Sega today confirmed what people have been whispering for weeks: that it will cease production of the Dreamcast, and focus strictly on game production for Sony, Nintendo, Microsoft, and other platforms.
According to the company, Dreamcast sales are off 44% from company goals. Yet stemming the flow of red ink won't be painless, either: shuttering hardware operations will force the company to take an enormous financial hit, to the tune of $689 million. This will cause Sega to post a record net loss of over $500 million for the current fiscal year (which ends March 31). Sega has indicated that getting out of the hardware business will likely entail cutting its workforce, and it has not ruled out divesting its European and American operations.
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