The shortfall in PlayStation 2 game consoles, due October 26, has put Sega’s Dreamcast back into the game. Research firm PC Data says Dreamcast sales have more than doubled in recent months, ranking the system second in revenues behind Sony and ahead of Nintendo. Sega has exploited Sony’s problems by cutting Dreamcast prices by $50 to $150 and rebating the full cost for those who sign up for the Seganet online gaming network and Internet service.
Another plausible explanation has come forth to explain the PS2 delays and shortages. Sony has publicly blamed a parts shortage, but has refused to say which parts are to blame. Analysts and suppliers, however, have doubted the claim simply because few would consider withholding critical parts from an electronics player with Sony’s clout. According to an article in the New York Times, some industry insiders are now saying that Sony’s explanation is true, but the missing parts that have led to the supply fiasco are Sony’s own microprocessors. One analyst says the company underestimated the difficulty of producing chips when it went into the microprocessor business.