Sega's Dreamcast games console has so far failed to meet sales expectations and the company now expects to ship about half of its previous estimate.
The electronic games giant expects to sell some 600,000 consoles in the second half of this year and has widened its loss forecast for the year ending 31 March to 44.9m yen (£256,000) - more than double its previous estimate of 19.8m yen.
But Sega hopes to sell more Dreamcast consoles in the first half of the fiscal year ending March 2000 as a result of stronger overseas sales.
Sega has bet the family silver on Dreamcast, which it hopes will move it back into the centre of the $20bn home games market. It is flaunting the console's internet access capabilities to attract consumers.
Sega's arch rival Sony is also gearing up to launch its long awaited Playstation 2 console on 4 March. Playstation 2 will also have internet access and DVD support.
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