Celebrating The 25th Anniversary Of The Sega Dreamcast
By Shawn Surmick - October 25, 2024
If you were a kid growing up in the 1980s, the name Sega was synonymous with fun. Sega was a well-known manufacturer of iconic arcade video games like Golden Axe, Afterburner, Space Harrier, and Galaxy Force (among many others) that graced the arcades in the mid-1980s. By the time Nintendo managed to reenergize the home video game market with the launch of the Nintendo Entertainment System (aka NES) in 1985, Sega was right there with them with a home video game system of their own. Known as the Sega Master System in the United States, the system failed to compete with Nintendo, but Sega was determined to create a more powerful system that could bring its back catalog of arcade hits home. The answer to this new powerful video game system was the Sega Genesis. Twice as powerful as the 8-bit NES, Sega released this behemoth in the United States in 1989, and the company knew it was going to be an uphill battle to tackle dominance away from Nintendo. Nintendo had been riding high, having a near monopoly on the home video game market thanks to exciting new characters and deep, engaging games that previous companies like Atari could not compete with. However, thanks in part to a brilliant marketing strategy featuring the catchphrase, Sega does what Nintendont, Sega managed to sell a few hundred thousand units of their new Sega Genesis system here and there. At first, Nintendo was not worried about Sega becoming a worthy competitor because Nintendo believed that since Sega was primarily an arcade video game manufacturer, Sega could not make engrossing home video games. That all changed, however, when in 1991 Sega introduced a new mascot by the name of Sonic the Hedgehog. Sonic competed head on with Nintendos famed mascot Mario, and slowly but surely video game players started to favor Sonic over Mario. This caused Nintendo to fast track the release of their own 16-bit system known as the Super Nintendo Entertainment System (aka SNES), and if you were alive in the early 1990s you know the rest. Sega actually managed to compete head on with Nintendo, and by 1993 both companies had an equal amount of market share in the coveted home video game market. Unfortunately, it was at this point in time that several mistakes were made. Sega was an unfocused mess, releasing far too many add-ons for its Sega Genesis system--mainly the Sega CD-ROM expansion system and the disastrous 32X add-on accessory that supposedly turned the Sega Genesis into a 32-bit system. It was also at this time that Sega announced plans to create a new 32-bit CD-based system, which upset parents who bought all of these overpriced add-ons for their Sega Genesis. Nintendo made several mistakes at this time as well, most notably attempting to engage in a risky deal with both Sony and Philips to create a CD-ROM expansion for their SNES. Nintendo pulled out of the deal, and this led Sony to develop their own video game system known as the PlayStation, which would launch in late 1995 and (spoiler alert) nearly destroy Sega and sting Nintendo in the process. Flash forward to 1997, and you have Sony scoring a surprise win with their 32-bit PlayStation system while Nintendo was hanging on with their release of the Nintendo 64 system thanks in part to the spectacular Super Mario 64 3D game that was released alongside of it. Sega, unfortunately, attempted to release their $399 Sega Saturn game system in mid-1995 in an effort to beat Sony and Nintendo to the proverbial punch, but it was deemed too costly and too underpowered to compete. By 1997, Sega was doomed, and the Sega Saturn was considered a commercial failure. Looking to get back into the home video game market it triumphed in before, Sega greenlit a new system known solely as the Dreamcast. On the surface it looked like Sega had something here. The system was much more powerful than the Sony PlayStation and the Nintendo 64. Like the Nintendo 64 it would retail for only $199 and be based on CD-ROM technology. Unfortunately, Sega miscalculated the market. Sony was already gearing up to eventually release their PlayStation 2 system, which used a DVD drive, allowing the system to not only play new Playstation 2 games right out of the box, but also DVD movies, and at this time, standalone DVD players were quite expensive. This was a smart marketing move by Sony because Sony would advertise the system as a cheap entry point for consumers who wanted a DVD player with the option of playing state-of-the-art games. Still, the Sega Dreamcast launched on Sept. 9, 1999, and was preceded by a massive advertising blitz that video game enthusiasts fondly remember for its creative Its Thinking advertisements. The system launched, and supply shortages were seen at most major retailers across the United States. Going into the 1999 holiday season it looked like Sega was back, and they had a stellar holiday season. Unfortunately for Sega, however, once gamers got a look at just how powerful the Playstation 2 system was and what it offered, along with being able to play their old original PlayStation games right out of the box, Sega was once again in trouble. By the end of 2001, Sega would discontinue the Sega Dreamcast, and the company announced they would exit the home console market and instead focus on making games for competitors systems. To this very day, Sega has never released another full-fledged home video game console since the failed Sega Dreamcast. Recently, the Sega Dreamcast just celebrated its 25th anniversary in the United States. Writing this brings a tear to my eye as I was one of the early believers of the Sega Dreamcast and bought my system on launch day along with several incredible games like Sonic Adventure, Soul Calibur, and The House of the Dead 2. The Sega Dreamcast was well ahead of its time and was the very first video game system to ever come with a built-in broadband modem. While the system can still be found relatively cheaply today, anywhere from $75-$125 on average, some of the later release games can sell for a premium. Titles like Illbleed, D2, Project Justice, Skies of Arcadia, Mars Matrix, Cannon Spike, and several other top-tier titles for this system can easily cost $100 or more used. It should be noted that almost all of these titles I just mentioned were at one time or another seen selling in the bargain bins at stores like Toys R Us, Sears, and Electronics Boutique back in the day for about $19.99 each. New and factory-sealed versions of these titles can sell for around $400-$500 today. The Sega Dreamcast is quickly becoming a popular vintage video game system to collect for especially since a lot of us remember fondly growing up with the system and its games. If Sega would have been so wise as to launch the system as a direct competitor to the Sony PlayStation 2 console and offer DVD compatibility, who knows what could have been? If you happen to see a Sega Dreamcast selling at a flea market or yard sale and it is fairly cheap, I assure you you wont regret the purchase. Just use caution if attempting to invest in the system and its games over the coming years, as the Dreamcast is still not as popular or mainstream as Nintendo games and consoles. Shawn Surmick has been an avid collector since the age of 12. He currently resides in his hometown of Boyertown, Pa., and is a passionate collector of antiques and collectibles. His articles focus on various topics affecting the marketplace.
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