Sega this week announced a deal with WebTV that will bring the online service to its upcoming Dreamcast games console, which will be released this Christmas in Japan. A Fall 1999 release is expected for the United States. Dreamcast, which will ship with over 40 CD-ROM-based titles, will offer its users Internet access through the WebTV network. The WebTV console itself will be upgraded to a Dreamcast-compatible design featuring a CD-ROM drive and Windows CE as the OS.

Sega expects to sell over one million units of the Dreamcast in Japan by the end of the year. Total sales of existing WebTV units are in the 400,000 range