This new initiative between the world’s leading developer of digital TV technologies and the global games company represents the latest stage in Pace’s strategy to enhance and extend the capabilities of the digital set-top box. The first step in this strategy is the incorporation of hard disk drive (HDD) technology similar to that used in personal computers – into the set-top box to create the digital home gateway. By integrating HDD technologies, Pace is creating opportunities for broadcasters and others to develop a host of additional applications for the home, all accessed through a single device.

The collaboration between Pace and Sega is designed to provide digital TV customers with on-demand access to hundreds of console quality games with 3D graphics, digital sound and full motion video. Available for all major digital TV platforms including cable, satellite, xDSL and digital terrestrial the device offers significant revenue and marketing opportunities for digital broadcasters.

It is envisaged that consumers will access the games in either a ‘pay-per-play’ format or ‘hire’ games for a fixed time period. These revenue options are made possible by downloading the games to an HDD currently 40 Gigabytes that Pace has incorporated into its digital TV home gateway. In addition to storing material, the HDD also acts as a jukebox, allowing games to be transmitted wirelessly to and played on portable, hand held devices.

Last year, Pace introduced its home gateway with integrated personal video recorder (PVR) functionality. The PVR home gateway, which is due to be rolled out to consumers this year by a major UK broadcaster, offers a host of features that turns the set-top box from a pay-TV access device into a fully functioning video recorder. Among the features it offers are the ability to pause a live broadcast, and to start it playing again when the viewer is ready even before the broadcast has finished. The facility to store hours or days of television broadcasts for playback as and when the viewer wishes. The capability to record multiple channels simultaneously, while the viewer is watching another channel, as well as ‘frame-by-frame’ instant replay.

Andrew Wallace, marketing director, Pace Micro Technology said:

Our announcement with Sega is a world first. Together, Pace and Sega will offer digital broadcasters a valuable new service for their subscribers, as well as an important source of additional revenues.

Pace’s vision is to change the way in which consumers interact with digital TV technologies. We have created a development path that is leading the industry from the set-top box to the home gateway and beyond to the fully integrated networked home, based upon the digital set-top box as the central control and communications device.

For Sega, integrating games into set-top boxes expands its market potential beyond conventional games consoles. Existing users now have a new way to access games, and new users will be attracted since anyone with the HDD enabled home gateway box will have access to Sega’s own extensive and licensed games portfolio.

Hideki Sato, Representative Director and Vice President of Sega Corporation, commented:

With the advancement of semiconductor and network technologies, set-top boxes and digital home appliances, the new concept of accessing information from a single device in the living room will become increasingly popular. Entertainment content, most of all games, are becoming the most attractive and sought after element in the expansion of the home network.