Sega boss says cuts have come too soon

A European Dreamcast price war has begun in Germany, angering Sega Europe's grand fromage JF Cecillon. Retail giants Karstadt have reduced the console from Dm499 (£160) to just Dm399 (£125), with a resultant eight-fold increase in hardware sales. Saturn, a major German electrical chain, reacted by reducing the system to Dm349 (£110), while other smaller retailers have slashed the price to around Dm299 (£95).

This hardly comes as much of a surprise as the same thing happened to PlayStation and N64 just months after they launched. Will UK retailers follow suit? Of course they will. We expect to see the system cut to £149 with the next month or so, but that's only our opinion.