Sega Web strategy includes Sega-branded Internet access

Sega Web strategy includes Sega-branded Internet access <br><br>NEW YORK (AP) -- Sega Enterprises Ltd. is playing out its future on the Internet, stepping up its Web presence with the launch of anew

Tuesday, April 4th 2000, 12:00 am

By: News On 6

Sega Web strategy includes Sega-branded Internet access

NEW YORK (AP) -- Sega Enterprises Ltd. is playing out its future on the Internet, stepping up its Web presence with the launch of anew Internet service provider this fall.

Sega, realizing online gaming will play a big role in the future of the video-game market, is expected to unveil today its plans for a new online entertainment company.

The company will includes SegaNet, a high-speed Internet service provider with multi player gaming as well as chat capabilities and information about its video games.

The company is the first of the video-game manufacturers to give a defined blueprint of how it will use the Internet to enhance playtime.

"They are creating a community of serious gamers, and it is a smart move," said Liz Leonard, a senior analyst at research firm Gomez Advisors in Lincoln, Mass.

"There is a huge market out thereof people who want to not only play games online but talk about strategy, etc."

Just a year ago, the Japanese-based Sega wasn't a contender in the U.S. video-game market. It failed to come up with a gaming system that could compete with rivals like the Sony Play Station and Nintendo 64.

It has roared back since it launched Dreamcast last September, now commanding a nearly 15 percent share of the U.S. video-game hardware market.

But with its rivals planning to release new gaming platforms in the United States within the next year, Sega is looking for ways to hold onto its audience. Much of that strategy involves the Internet.

Sega is forming a new company called Sega.com, which will be completely independent from its parent company.

Part of the new company will be SegaNet, a more advanced version of the company's Web site. Dreamcast and PC users can subscribe to SegaNet at $21.95 a month, which also will supply them with a wider ange of content, such as tip sheets and cheat codes.

Online gamers must still buy Sega's software, and only a few games will be Web-compatible at first. Sega plans to quickly expand that roster.
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On the Net: Sega Enterprises Ltd.: http://www.sega.com