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TVTranscript
00:02on the heels of a doomed console it was a really crucial time for Sega the dream was born
00:10and they really wanted to get back into the race so they put out the dreamcast
00:14it survived an executive shake-up so we are partying other ways and i left the company
00:20and saved a company retailers started calling us in week two and three saying we're out of stock
00:26we're out of stock we have to have more hardware people are banging down our doors but the dream
00:31was short-lived and then it just stopped i mean it was just silent dreamcast sat on store shelves
00:41this is the story of the sega dreamcast here is a system that was ahead of its time
01:13in november of 1994 sega launches its sega saturn in japan
01:19at the time of conception it was going to be basically just a really souped up 2d machine
01:24a little bit of hardware devoted to 3d and once playstation announced their specs and it was going
01:30to be this full 3d machine i think they went in there and kind of retooled it in a hurry
01:33and it probably wasn't as efficient or as powerful as it probably should have been
01:42it actually went quite well in japan and saturn had a long life span in japan
01:48thanks to strong arcade ports like sega's virtua fighter series the saturn sells 5.8 million units
01:54in three years in japan virtual fighters have phenomenon beyond anything we could even compare
02:01to in the united states i mean nothing compares to how big it is there and the idea of bringing
02:06that home and being able to play was a very bold intelligent move on their part in japan at this
02:14point the arcades were still hot the arcades have been dead for 10 years here in america but in japan
02:19having an arcade hit meant something so saturn had an arcade hit the saturn does not catch on outside of
02:25japan and is quickly equipped by sony's playstation the saturn launch before playstation i believe in
02:32the summer of 1995 which was the wrong time to launch also a very expensive price point i believe
02:39that launched at 399 versus 299 and did not have very good games were not that fun to play as
02:49we all
02:49know if you want to play a game you want to have fun they were looking to be like this
02:54kind of hardcore
02:55gamers machine with these ports of the arcade games where the sony came in with a completely different
03:00approach you know they wanted this to be a games machine for everybody and they kind of really
03:04shifted the perception of everybody of the consumers towards what a game machine is i think for the
03:09people who purchased saturn they were quite satisfied with the games that they got
03:15there were some wonderful gameplay experiences available on the saturn that weren't available
03:18elsewhere so it was a purchase that ended up being of value to consumers if people were purchasing
03:23saturn because they felt like they could get 10 years worth of gameplay out of it with sufficient
03:28gameplay innovation over that period of time i would say those people are probably disappointed
03:35the sega saturn was very successful with the hardcore gamer crowd and with the broader range of crowd it
03:41wasn't quite as popular but it was still a major name sega was in a really really tough position
03:47in that they had extended themselves they had overextended themselves there was a time prior to dreamcast
03:53just prior to dreamcast really as saturn was coming out where sega had the saturn in parts of the
04:00world they were still selling the master system they had pico they had 32x they had genesis they had game
04:06gear they had nomad so that's seven systems concurrently they had really gotten themselves
04:12into a rut they had completely botched the saturn launch in north america i believe if we look at saturn
04:21it was a system that shouldn't have been launched it was too difficult to develop for therefore the games
04:27were not fun and the games weren't there this is not about hardware this is about software software has
04:33always driven hardware you don't have the software the hardware will fail saturn's failure causes sega to
04:40lose 267.9 million dollars and lay off 30 percent of its workforce there was all of a sudden a
04:48couple
04:48of years where they didn't have any kind of a console at all and since sega was very much a
04:54hardware
04:55specific company that was a very big problem sega's solution is to begin work on a brand new console
05:02and this time the japanese gaming giant is determined to learn from its past mistakes
05:07well we really had to re-establish ourselves as a company with all the retailers and gain the
05:14consumer confidence back because of the failures that sega had sega hopes to win back the consumer
05:20confidence that it lost and prepares a surprise announcement for e3 in 1998 then they had a few
05:26closed door meetings you had to sign your life away on this nda you at pain of death you could
05:32not
05:33tell people what you saw for months by the second or third day of the show i'd forgotten all about
05:40those little nda things those non-disclosure agreements that i had signed i needed to write
05:46something for msnbc about what i had seen at the show and so i wrote all about this great demonstration
05:51i had of dreamcast behind closed doors and then i woke up at six in the morning and realized what
05:56i had done and called msnbc and said no turn it off turn it off turn it off please and
06:03they took it
06:03off and of course sega was furious they were livid the happy ending to the story was that that my
06:09ratings
06:09on that particular article were so bad that sega no longer cared but granted it only ran for three hours
06:17codenamed the katana this new system would later be known as the dreamcast i was completely excited
06:24at the prospect of a next generation platform from sega because it was clear that we had struggled
06:28with saturn the sega saturn was a miserable failure for sega and they really wanted to get back into the
06:33race so they put out the dreamcast way before any of these next generation systems came out but would
06:39gamers trust sega after all of their past failures definitely what sega was trying to incorporate
06:44into the dreamcast they learned from the saturn was a broader audience they were trying to make it a
06:48gamer machine for everybody when they were really trying to shift gears there it was a really crucial
06:52time for sega but it was also clear that the company had every intent of rejoining the battle
06:57and we were all ready to rejoin the battle
07:15on november 27 1998 the dreamcast is made a reality to the japanese gaming public one of the key
07:24events for all game consoles is the japanese launch japanese launches up to this point were something big
07:31i mean really big the japanese government requested companies to not launch their game systems during
07:40weekdays because it cut down on national productivity trains would be slowed down as they'd go by akihabara which
07:47is the electric town in tokyo japanese people loved good graphics at that time dreamcast was very great
07:57graphics so everyone was excited about it but the launch is not without its problems due to manufacturing
08:03glitches sega fails to meet shipping goals for the console so with dreamcast they missed their first
08:09window of opportunity because nec was making their their graphics chip and there weren't enough
08:14available for a full launch so a lot of people left stores empty-handed the image of the time of
08:23the
08:23sega dreamcast i think with the japanese public was looks like maybe sega's turning over new leaf it's
08:28kind of it was a new feeling for sega i think and they really had a successful job of arousing
08:34interest
08:34in the public and showing that they were maybe ready to start something really strong here it was sega's
08:40next big console after the sega saturn the sega saturn was a miserable failure for sega and they really
08:45wanted to get back into the race so they put out the dreamcast way before any of these next generation
08:50systems came out with the u.s launch still more than a year away sega president bernie stoller takes
08:56note of the mistakes made by his japanese partners and i was interested in rebuilding sega reestablishing
09:05the strength that it once had both in software and hardware and rebuild a team that became a world-class
09:11team to help drive an organization and that's what i wanted to do and i believe that the team did
09:17that
09:17it's not about one individual it's about a team what i can say about bernie stoller is that he did
09:23a
09:23lot of things really really right you compare the japanese launch of dreamcast to the u.s launch of
09:29dreamcast and bernie had the publicity in place he had the enthusiasts really rallied so that they were
09:37excited while sega is poised to take the u.s by storm sony is set to shake out the video
09:43game world
09:44at every moment with dreamcast it was always kind of threatened by the looming shadow of this
09:50unshown thing the the shadow of playstation 2 always loomed large over it at the beginning everyone
09:59was very excited and behind the sega dreamcast but as time went on more and more focus shifted towards
10:03the playstation 2.
10:07then as early as march in 1999 just really a couple of months later ken kutaragi unveiled playstation 2
10:15and was so much more powerful than dreamcast and could do so much more than dreamcast
10:20sony frankly was very effective in holding out that promise to gamers
10:26i think to a certain extent they succeeded in convincing their existing playstation 1 audience
10:31not to get a dreamcast and to wait until this mythical new system was going to appear
10:39the dreamcast excites american gamers with pre-orders for the console reaching 300 000
10:44shattering the record of a hundred thousand set by the playstation in 1995.
10:48we really had to re-establish ourselves as a company and gain the consumer confidence back
10:54and they were very very aggressive pushing the whole idea of dreamcast
10:59there was a lot of excitement about the sega name at that point
11:04less than one month before the launch of the dreamcast the team at sega is dealt an unexpected blow
11:10right before the day itself bernie was fired from sega
11:17i didn't agree with who was there that then became my boss mr okawa
11:23so um we had a partying other ways and i left the company
11:27uh it was unfortunate but the team that i had built and the team that had really helped build the
11:33launch
11:34they were in place they were ready to go they were ready to drive the product and they did
11:41the dreamcast juggernaut could not be derailed and the system launched in the u.s
11:45on september 9th 1999 for 199 dollars i think what made the dreamcast so great uh are really the games
11:55right from launch it had a couple really great games it had the soul caliber
11:59you think sonic adventure was really popular
12:08they had great football games with sega's nfl 2k series
12:19one of the other things that made the dreamcast so great is the online feature
12:24out of the box this came with a modem this system
12:28immediately could be getting on and playing against other people across the country and that
12:32was a real novelty back then
12:37just four days after the u.s launch sega reports selling 372 000 dreamcasts
12:44and bringing in over 132 million dollars
12:49the launch was successful sega was successful
12:54and it regained the confidence of both the retail community and the consumer
13:01we knew the dreamcast was a tremendously successful launch when retailers started calling us in week
13:05two and three saying we're out of stock we're out of stock we have to have more hardware we have
13:09to
13:09have hardware people are banging down our doors sega tried to do all the things that they had done
13:14wrong with saturn right with dreamcast saturn was very miserable to program dreamcast was a snap to
13:21program saturn had a very old-fashioned controller it was really just a genesis controller still
13:26with the kidney bean shape dreamcast had a newfangled controller they really looked and tried to do
13:32everything different and that side of things was really good but would it be good enough to hold off
13:38the playstation 2
13:49on october 26th of 2000 the heavily hyped playstation 2 is unleashed on the masses the first year of
13:56playstation 2 the biggest hit on playstation 2 was matrix people were watching the movie they weren't
14:01playing the game play in the game playstation 2 sparked the dvd market in japan dvd hadn't caught
14:07on in japan and before playstation 2 you'd walk through akihabara and there'd be game stores every
14:13place after playstation 2 you'd walk through akihabara and you'd see dvd stores and if you walked into
14:20these dvd stores they were demonstrating movies using playstation 2.
14:28the dreamcast would have been a bigger player in my opinion it hadn't had a dvd player installed from
14:33the get-go sega looked over its shoulder and they realized they had lost japan there was no resurrecting
14:41japan they might have been able to hold japan if they'd had a dvd player in there because you know
14:47in
14:48the early days for for playstation 2 playstation 2 was the cheapest dvd player in japan and if they had
14:55that distinction they might have been able to hold on playstation 2 sales hit 165 million dollars in
15:01its first three days and the dreamcast suffers i mean it was just silent dreamcast sat on store shelves
15:10no games would did that well again even good games just kind of sat there and people took them but
15:19it was just somebody turned off the light
15:24it was a big hit with gamers but unfortunately it wasn't really you know commercially viable it came
15:28in at a sort of awkward time and right before the release of the playstation 2 so unfortunately it
15:32didn't sort of build the fan base that it could have sega you've got to understand is hemorrhaging
15:37money as a company they realized that if they could sell four to five million units worldwide
15:44that they could still have a profitable market they could last a little longer sega catches a
15:49break in december of 2000 when sony can only ship half as many ps2s as it planned for the holiday
15:54season
15:56we had a crew of people who were very um into being the underdog i'll allow you to die like
16:03a warrior
16:08uh oddly enough becoming the underdog almost galvanized us further really brought us together
16:15as a team because we knew exactly what we had to do and they thought you know we drop our
16:19price
16:20we come out aggressive with all kinds of things including you could have a free dreamcast and it
16:26wasn't enough they they pushed they pushed they pushed and at the end of christmas they hadn't made
16:31headway what are you saying rumors started coming out that sega was no longer manufacturing dreamcast
16:38and i remember interviewing charlie belfield i said the rumor is that you're going to discontinue
16:47and he said no that's not true and i said are you manufacturing them now and he said no and
16:54i said how
16:54much inventory do you have and it turned out that there was more inventory in the channel and in their
16:59warehouses than there was sold and i said okay that doesn't look good charlie when will you start
17:07manufacturing again and that was when charlie said you know we have no plan to start manufacturing again
17:13and that was when that was the first time sega came out and officially announced that yeah we've
17:19discontinued it was a real crush to the egos of everybody i mean i remember i was in the meeting
17:25where
17:25we were told that the dreamcast was not going to continue and everyone just was silent and
17:30it was just speechless you know no one said anything it was just very heavy very oppressive
17:37i don't know that sega could have done anything differently to really save the dreamcast
17:40the biggest nail in their coffin was sony really pushing the playstation 2. to the delight of gamers around
17:48the world sega announces that they are going to create games for all consoles
18:01i think it was a time where sega really had to address itself and say are we going to now
18:07just be
18:07a software company and if we are going to be a software company is the team that we have here
18:13going to be one of the best organizations to build great software because that's going to have to be
18:18our focus come on let's begin and that's going to have to be our drive and that's how we're going
18:25to
18:25be able to survive go oh yeah so when sega said that they would no longer be hardware specific
18:36there was a lot of excitement they really were the bell of the ball
18:42microsoft for their xbox console got sega to promise them panzer dragoon
18:49a beautiful game but sony turned around and they had the virtual fighter series locked up for
18:55themselves you know that was the arcade hit and that was the bigger seller especially in japan that
19:01was a big seller virtual tennis there was a very committed sega fan base right up till the end of
19:09dreamcast that very much appreciated the sega style of game play as we transitioned from a hardware
19:19company pushing the dreamcast platform to a software developer we were able to successfully convert the
19:27sega fan base to other hardware platforms via our games we were able to explain to gamers yeah you can
19:34still have your jet grind radio but it's just going to happen on these other platforms but we promise
19:39you it'll be the same exact wonderful gameplay experience and sega gamers came along with us
19:46but the dreamcast will live on in gamers hearts and memories
19:51if you picked up a dreamcast you were holding something that felt like a gamer's machine
19:55it felt like it was made for games without a doubt the dreamcast showed the world that online gaming was
20:02possible and fun and interesting on console so there's no question with respect to online
20:06gameplay dreamcast will be remembered forever dreamcast is something special mostly because
20:11you know it came from sega so the games that really were released with especially at the beginning were
20:18some of the best games of the last generation or even this one i've been in this industry a long
20:22time
20:23i've seen a lot of hardware companies come and go dreamcast will always have a position
20:28in this industry from a historic standpoint because it did so well in the first two years that
20:35was there it really established itself here is a system that was ahead of its time people who owned
20:42a dreamcast in 2000 and 2001 were probably a lot happier than people who owned a playstation 2
20:50because there were a lot of great games for dreamcast
20:55i think that it will go down in history as one of the more desirable systems
21:10it all started with easter eggs before you know it i couldn't get enough of god mode when i don't
21:15punch them in i get a little weak i thought you're supposed to go backwards and pitfall i can't even
21:19make it through two levels without infinite ammo i can't remember a time when i didn't use codes
21:23they made up the codes i just used them no one's gonna find out get the latest cheat codes and
21:29walk
21:29through strategies for grand theft auto san andreas right so hold me to see if you got with a kid
21:36cheat season premiere january 18th at 10 eastern 7 pacific
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