UK set for Sega grey import

Sega's Dreamcast console is set to seep into the UK market before the end of the year in a direct challenge to the European Union's attempt to stunt the grey import market.

Although Sega's Dreamcast console will not officially arrive in Europe until Christmas 1999, it will be on sale in Japan from 20 November this year. Game retailers are already registering interest from the public and are preparing grey import routes.

A salesperson at a London games retailer stated: 'We certainly will be stocking them. We'll have them from 20 November and they'll cost no more than #500.' Other game specialists were quoting up to #1,000 for a grey imported console.

Paul Donnelly, managing director of distributor Gem, said: 'It may not be the corporate line, but the grey market does develop the market. It gets the early adopters on board and raises interest in the product. A manufacturer can stop it, but it chooses not to.'

He added: 'I don't think this is the end of it - I don't think retailers, the UK government or UK consumers will stand for it.'

Kazutoshi Miyake, Sega European president, was reported as saying he expected between 5,000 and 10,000 Dreamcast consoles to be imported to Europe on the grey market this year. However, Sega would not comment further.

Nick Gibson, analyst at Durlacher, said: 'Grey importing is a huge market.

Sega won't be too worried as a grey market will only harm Sony or Nintendo and it will certainly stimulate the market and interest. In effect, it is free advertising prior to the European launch.'

One industry observer said: 'Sega won't be particularly worried. The Japanese console will have some weird Japanese games and cost a lot. If it's #1,000, you could fly to Tokyo and buy one.'