The internet has triggered off an explosion in online gaming, but it is too slow, according to Sega president Shoichiro Irimajiri.
Speaking at Milia 2000 in Cannes this week Irimajiri pledged to build super-fast networks by the end of 2003.
He said game players will only be able to realise the true potential of Sega's Dreamcast console when these networks are put in place. Dreamcast, which was launched last year, is the first internet-ready games console.
Irimajiri said games developers are being hobbled by the internet, citing the example of a driving game which is impossible to play over the internet because of the time lag.
"The most important aspect of real-time interactivity is speed," he said. "The existing global internet is not fast enough."
However, figures released this week show that fewer than a third of Dreamcast owners in Europe are using the internet capability of their consoles - let alone gaming online.
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