Sega Dreamcast

Sega · 1998 – 2001

The Dreamcast was Sega's final and most innovative console: the first to include a built-in modem, online gaming, and a VMU memory card with its own screen. Launched in 1998, it was discontinued in 2001 after Sony's PlayStation 2 announcement undermined consumer confidence. It remains one of gaming's most beloved machines.

The Dreamcast used a Hitachi SH-4 CPU at 200 MHz and a PowerVR2 GPU delivering 3D performance competitive with early PlayStation 2 titles. Its built-in 33.6K modem — upgraded to 56K in later versions — enabled online gaming for Phantasy Star Online and NFL 2K1, making the Dreamcast the first console to make online play accessible to mainstream consumers. The VMU (Visual Memory Unit) memory card had its own screen and buttons, enabling secondary gameplay displays and mini-games. Despite critical acclaim for its library — Shenmue, Jet Set Radio, Soul Calibur, Crazy Taxi, Skies of Arcadia — Sega's history of hardware failures and Sony's announcement that the PlayStation 2 would deliver DVD playback and DVD-quality graphics eroded consumer confidence. Sega discontinued the Dreamcast in March 2001, exiting the hardware business entirely.