Tokyo offices raided by Japanese Fair Trade Commission

Sega's offices were raided by the Japanese Fair Trade Commission yesterday, over allegations that the company have been fixing the shop price of Dreamcasts.

About 30 Sega offices are believed to have been searched by officials looking for evidence about claims the company put pressure on retailers not to sell the console for less than 19,900 yen (£117).

"It is true that we have been inspected, but we cannot make an official comment on the allegations yet," a Sega spokesman said yesterday, adding that the company would "co-operate with the investigation".

The news was broken yesterday by Japanese newspaper Yomiyuri. Today the BBC and websites Bloomberg and Nekki Net have all given the story extensive coverage.

Sega won't be the first high-profile company to find themselves at the centre of a restrictive practices storm, but the probe is bound to embarrass them hugely. Watch this space as events unfold.