Microsoft and Sega will finalise next month a plan to build a 128-bit games machine based on Windows CE, according to a new report.
A spokeswoman at Sega would not comment specifically on the report which appeared in an issue of Nihon Keizai Shimbun. She said that the two companies are have ongoing discussions in many areas.
According to the article the proposed games machine will run on an operating system derived from Microsoft's Windows CE operating system for handheld computers. The games machine will be powered by a future version of Hitachi Ltd.'s SH family of RISC processors.
The games machine will be sold from 1999 and be priced at below 30,000 yen (US$250), according to the paper.