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Initially known as "Whitebelt", This angered Sega of Japan executives, who eventually decided to use the Dural chipset and cut ties with 3dfx.According to former Sega of America vice president of communications and former NEC brand manager Charles Bellfield, presentations of games using the NEC solution showcased the performance and low cost delivered by the SH-4 and Power VR architecture.On November 27, 1998, the Dreamcast launched in Japan at a price of JP¥29,000, and the entire stock sold out by the end of the day.However, of the four games available at launch, only one—a port of Virtua Fighter 3, the most successful arcade game Sega ever released in Japan—sold well.Sega announced that Sonic Adventure, the next game starring company mascot Sonic the Hedgehog, would arrive in time for the Dreamcast's launch and promoted the game with a large-scale public demonstration at the Tokyo Kokusai Forum Hall.
As early as 1995, reports surfaced that Sega would collaborate with Lockheed Martin, The 3DO Company, Matsushita, or Alliance Semiconductor to create a new graphics processing unit, which conflicting accounts said would be used for a 64-bit "Saturn 2" or an add-on peripheral.He further stated that "Sega's relationship with NEC, a Japanese company, probably made a difference [in Sega's decision to adopt the Japanese team's design] too." The choice to use the Power VR architecture concerned Electronic Arts (EA), a longtime developer for Sega's consoles.EA had invested in 3dfx but was unfamiliar with the selected architecture, which was reportedly less powerful.Nintendo's long delay in releasing a competing 3D console and the damage done to Sega's reputation by poorly supported add-ons for the Genesis (particularly the Sega 32X) allowed Sony to establish a foothold in the market.The Play Station was immediately successful in the U.
After a change in leadership, Sega discontinued the Dreamcast on March 31, 2001, withdrawing from the console business and restructuring itself as a third-party publisher. Although the Dreamcast had a short lifespan and limited third-party support, reviewers have considered the console ahead of its time.