Sega Enterprises Ltd and Microsoft Corp are in the process of negotiating an agreement on the joint development of computer games that will run on a 128-bit machine, according to the Nihon Keizai Shimbun. The game will run on a Microsoft Windows CE-based operating system, so that it can be played on both a game console and a personal computer. The deal is expected to be signed in October. The machine is will sell for 30,000 yen ($250) or less and would feature a built-in modem to allow competition with other players via a phone line. The use of a Microsoft operating system is expected to simplify the development of games for both PCs and game consoles, thereby cutting the time and costs required and enabling the companies to offer a wide variety of game software at reasonable prices. The game machine would use a 128-bit microcontroller now under development at Hitachi Ltd. Neither company would comment on the proposed tie-up.
