Sega Enterprises Ltd looks set to incorporate Microsoft Corp’s Windows CE operating system into its new video game unit. The companies have yet to make an official announcement, but they told Windows Magazine it is very likely that their four year relationship will be extended to see the inclusion of CE in the new Dural device which is expected to start shipping in the autumn. It was rumored in September that the companies were working on an agreement that would see the inclusion of the Microsoft operating system (CI No 3,242). The system will offer optional support for a modem, keyboard and mouse and will run on Hitachi Ltd’s 200MHz SH-4 microprocessor and NEC Corp’s PowerVR2, which supports Silicon Graphics Inc’s OpenGL three dimensional computing standard. Microsoft has described the integration of CE into the game system as a natural fit and looks to signal the establishment of yet another string to the software giant’s bow. The new games system could give Sega the boost it needs, having been affected by the success of the Sony PlayStation and the Nintendo64. When Dural is released it is expected to sell for around $300 to $350.