Sega Enterprises Ltd is warning that a chip shortage from its UK supplier VideoLogic Group Plc and its partner NEC Corp could affect sales of its new 128-bit Dreamcast machine, due to go on sale in Japan later this month. Advanced orders for the new machine have been strong, with 50,000 units pre-ordered, Sega told Reuters, but the supply of graphics chips would only be half of the expected volume by the end of the year. Sega originally said it hoped to sell over one million Dreamcast units by the end of March 1999, and 10 million over the next three to four years. Sales outside of Japan aren’t set to begin until the fourth quarter of next year. Sega chose to use the NEC/VideoLogic technology instead of chips from its original partner 3Dfx Interactive Inc, and only resolved a year-long lawsuit over the switch back in August (CI No 3,467). The first units are expected to hit the shelves on November 27. Japanese reports suggest that Sony Corp might be ready to launch a new version of its Playstation console later this month, although PlayStation 2 was originally expected to appear in April of next year. Playstation sales are expected to reach 21 million units over 1998-9. á
