Well it looks like the home console race is over, but for set top boxes the Dream lives on, as Sega has announced a new partnership with British technology firm Pace Micro Technology to develop a special TV box that has the ability to play Dreamcast games. According to a report on IGNDC, the announced production halt of the home console could well be just a tactic to make room for this new living-room gadget instead.
Sega and Pace unveiled the new box to press around the same time that the House of Sonic confirmed it was seeking to develop games for rival home consoles. You can see an image of a prototype box below (the controller ports won't be on the top of the unit in the final version, apparently).
The machine will not just be a Dreamcast though. The idea is for this beastly contraption to feature broadband applications, support for cable and satellite broadcasts, and digital VCR functionality. The set top box won't accept Dreamcast discs, but instead will run downloaded games off of an internal 40GB hard drive.
This is some brave new world we're living in right fellas?