On May 21, 1998 Sega revealed its next-generation console called Dreamcast .  It was the first console to be 128-bit and have a 56kbps modem.  The Dreamcast was made available to the public that Autumn at the Tokyo Game Show along with a range of upcoming titles for the first 128-bit console to hit the market.  Capcom showcased their Resident Evil: Code Veronica and Sega showed off its Sonic Adventure and Virtua Fighter 3tb games. Over a month later, on November 25, 1998, the Dreamcast was finally released to the Japanese public and sales were very high.  The European release came on October 14, 1999 and was also a big success. About 250 games were released in the US, 150 in Japan and 26 were exclusively released in Europe. One of the big selling points of the  Dreamcast was online multiplayer. But unfortunatly the technology at the time for online multiplayer was very limited and slow. They promised that you would be able to play against 'six million players' across the world when in reality with the modems being as slow as they were that was never going to happen. Then when the PlayStation 2 launched in March of 2000 that really effected the sales of Dreamcast and by that point because the PlayStation was so popular that they overtook the dreamcast in sales and in 2001 Sega announced they they were discontinuing the Dreamcast.

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Some of the best games for the Dreamcast includes The Typing of the Dead, Space Channel 5, Power Stone 2,Legacy of Kain: Soul Reaver, NFL 2K, Dead or Alive 2, Marvel vs Capcom 2: New Age of Heroes, Crazy Taxi and Soulcalibur.