Rumours started circulating about Sega's next console in late 1997. The main news coming from the 3Dfx company who were contracted to create the graphics chip for Sega's console. However, Sega dumped the 3Dfx chipset in favour of Vidoelogic's Highlander chipset. 3Dfx are sueing them for breach of contract which if Sega loses could cost them millions of dollars.
One of the biggest colaborations with the system is that Sega are using a version of Microsoft's arcade game operating system in Dreamcast. Details are still rather sketchy but if this is the case then many arcade games could be ported much easier, as could many PC games, something which has helped the Playstation no end.
It is now strongly rumoured that Dreamcast will be released late in 1998 in Japan and in mid-late 1999 in the rest of the world.
Sega recently stated that the Dreamcast system would not have any of their current coin-ops converted to it. If this is the case then we would not see titles such as VF3, The Lost World or any other older games. Sega apparently have a conversion of a Scud Race sequel in the works for the system. This is a title which will possibly spearhead the Dreamcasts launch.
It is believed that many of Sega's Arcade games have been passed on to other developers for conversion to the new system. Developers such as Labotomy (Exhumed) and Core (Tomb Raider) have been mentioned as possible candidates.
It seems as if Dreamcast may be developed by a number of companies including JVC, Sega, and NEC. It is not known when or where these different models will be released.
Fox Interactive has signed on to publish a game for Dreamcast, most probably Croc 2. It is not certain if Argonaut will be devloping the game or if it will be handed to another developer.
Interplay will bringing their VR Sports series to Dreamcast. While there is still no official word from Interplay on specific titles one will almost certainly be a Major League Baseball game.