Iomega and Sega Collaborate On Breakthrough Gaming Device; New Dreamcast-Based
Product Enhances Iomega's Beyond PC Initiative
ROY, Utah--(BUSINESS WIRE)--April 20, 1999--Iomega Corporation (NYSE: IOM)
today announced that Iomega and Sega have signed a non-binding letter of intent
to include Iomega's popular Zip(R) 100MB drive in a new collaborative product
that will be designed to attach to Sega's Dreamcast system.
The new product will also be designed to dramatically increase the
capabilities of not only game playing, but Web-based activities such as content
saving of e-mail and Web searches. In addition, Sega intends to sell private
label Dreamcast Zip 100MB disks, offering both the device and disks in
game-oriented channels.
The collaborative product is expected to be offered as an option to Sega
Dreamcast customers in the third quarter of 1999. Dreamcast began shipping
November 27, 1998 in Japan and is expected to begin shipping in the U.S. and in
Europe during the third quarter of 1999.
Dreamcast is one of the most powerful game systems on the market today.
Through a 128-bit architecture, offering high-speed processing capability, 26MB
of RAM, 64 channels of sound, breakthrough graphics, superb 3D rendering, a 1
Gigabyte GD-ROM, and a modem for Internet gaming, Web access, and e-mail,
Dreamcast has distinguished itself as a benchmark gaming system.
Via Zip(R) Built-In(TM), this new product will be designed to make
Dreamcast the first gaming system versatile enough to bring world-class game
playing, Web browsing and e-mail together in an integrated system. It will also
be designed to allow users to download game updates from the Web to Zip(R)
disks. The system will be designed to work independently or in conjunction with
Dreamcast games.
"We are seeing a major revolution in consumer electronics from analog to
digital," said Sean Kaldor, vice president, Emerging Market
& Technology Research, International Data Corporation. "As consumers demand
lower cost and easier-to-use solutions, digital technologies will open the door
to a much wider range of new functions. One of the fastest developing areas is
gaming consoles, in which interchangeable storage has a pivotal role."
"Iomega is changing the home game system market with this new device,"
said Mike Lynch, director of Beyond PC, Iomega Corporation. "The broad
familiarity of Zip drives with consumers, and our large installed base make Zip
drives the perfect removable solution for beyond-PC products, such as Sega's
Dreamcast game console."
"Dreamcast represents a whole new way of thinking at Sega," said Corporate
Senior Vice President of Sega Enterprises, Ltd., Hideki Sato. "We will be able
to enhance the potential of Dreamcast further due to the architectural
partnership between Iomega and Sega."
