Gem snatches Sega contract from rival

Retail - Second distribution deal taken away from Jack of All Games.

Gem has won the secondary distribution contract for Sega's Dreamcast console, pipping rival Jack of All Games at the post.

The primary distributor position went to Track One Logistics (PC Dealer, 23 June) which will deal with the multiples' central delivery site. The secondary contract will allow Gem to deal with the independents and individual store drops for multiples. The console is to launch in the UK on 23 September at £199.

Paul Donnelly, managing director of Gem Distribution, said: 'Sega has a strong and powerful team assembled to launch Dreamcast, and we are delighted that, after much speculation, we are to work alongside the company. We have some aggressive marketing plans up our sleeves, and are committed to ensuring that all our partners in the retail sector will share in Dreamcast's success.'

Paul Hooper, operations manager at Jack of All Games, was upbeat about losing out to Gem: 'It was a tight race. We were slightly disappointed but, in the end, it was well deserved for Gem - it has a lot of experience.

'We're still fit and positive and there are still the next generation Sony and Nintendo consoles which we will pitch for.'

Mike Sherlock, managing director of Sega, said: 'Our goal was to select the best distributor for our retail partners. In Gem we have a company with the vision and approach which complements Dreamcast's next-generation position. It joins the game with top customer service, innovative marketing programmes and commitment.'

Sega has also appointed Brio distribution to deal with the Dreamcast for Denmark, Finland, Norway and Sweden.

- Sega's Dreamcast push is also gaining momentum in the US. It is expected to rent out the console and games in Hollywood Video stores up to two months before the console appears in US shops for sale on 9 September.