Sega has appointed start-up company Track One Logistics as its primary distributor in the UK for its Dreamcast console, shifting the distribution battle to who will win the secondary contract.
Track One's role as primary distributor means it will deal with the multiples, while a secondary distributor will focus on the independent sector.
Gem and Jack of All Games are still in the running for the secondary spot for the console due for launch on 23 September at £199. Industry watchers said neither firm will have been pleased with being shunted out of the lucrative business with the multiples.
However, Gem and Jack of All Games' skirmish with Track One is not over yet, as it is also pitching for the secondary contract.
Track One's pedigree comes from its parent companies. It is a joint venture between logistics giant Tibbett & Britten and Startle, the games arm of entertainment distribution specialist Telstar.
Lyndsey Braggart, head of group communications at Telstar, revealed: 'Track One was set up to target large accounts such as Sega. There are still a couple of weeks before a decision is due on the secondary distribution contract, but we have pitched for it.'
Michael Sherlock, managing director of Sega UK, added: 'The arrival of Dreamcast is going to be one of the biggest launches the entertainment and consumer electronics industry has ever seen. We appointed Track One for its ability to deliver Tibbett & Britten's distribution excellence and Telstar's understanding of the entertainment business.'
Barry Watts, director of Track One and chief executive of Startle said: 'Track One is delighted to have won the Dreamcast primary distribution account. We have created a firm that offers a comprehensive logistics service, and look forward to working with Sega.'
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