Tuesday, March 17, 2015

Consumer Behavior and the Sega Dreamcast

*Disclaimer this post is not endorsed by Sega, just the opinion of a person who has love for the Sega Dreamcast, even though its lifespan was short-lived

The Sega Dreamcast was the last hardware Sega manufactured. However, the console’s lifespan was cut short due to its competitor at the time, the Playstation 2. It launched in the United States from September 9, 1999 (9-9-99) and was discontinued March 31, 2001.

The success of the Dreamcast, and Sega as a hardware company, was based on the consumer behavior of 2 major markets, United States and Japan. Europe counts, but I feel like these two countries were more crucial in Sega’s hardware life. Because of Sega’s previous console, the Sega Saturn, it would come to no surprise that consumers would have a bad taste for Sega. In addition, Sony was promoting its upcoming beast of a console, the Playstation 2, so consumers would wait in anticipation. To counter that, Sega took their mistakes with the Saturn and made them strengths with the Dreamcast, pushed promotions, and released the product before the Playstation 2.

Since the Dreamcast was the only new gen (generation) console released at the time, with its promotion, stores sold out of the system within the first weeks it was released. This was a result of consumers wanting the Dreamcast, regardless of its predecessor. A dead phrase that’s been repeated over and over is that the Dreamcast was ahead of its time: the diversity in games, the graphics, gameplay, console and controller design, and the first gaming console to offer online play with its built-in modem. Since this system catered to the general public instead of hardcore arcade gamers, the system was selling left and right. However, after the Playstation 2 was released, Dreamcast consoles were stacked on stores shelves and a lot were left in warehouses, eventually discontinuing manufacturing because the Playstation 2 overthrew the Dreamcast with one feature, a DVD player.

DVDs were growing, especially in Japan. Since Playstation 2 played games and DVDs, consumers were inclined to buy one over a Dreamcast. Because of timing and lack of consumer research, Sega resigned from being a hardware company to just a software company for other consoles.

In summary, consumer behavior is based on trends, timing, and research. If you know what people want/will want, when to initiate the product, and doing more research on what will be the next big hit with consumers, products may strive longer or overthrow others in competition. The advertising and promotions were executed well; the flaw lied within the console’s capabilities and the desire of the majority of consumers. I am a proud owner of a Dreamcast and do believe it’s a great gaming console. If you are able to find one for a great deal, snatch it. You won’t be disappointed.

Here is a short documentary about the Dreamcast. For those that are interested, check it out:


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