Sega Sues Kmart Over Dreamcast Payments

The suit, filed February 22, charges Kmart with skipping payment on $2.2 million of a $25.9 million bill for Dreamcast consoles shipped since 1999. Sega says that it ceased delivery of Dreamcast units to Kmart last summer for nonpayment. "Kmart's account became severely delinquent, and Kmart asserted numerous credits and deductions, which were not authorized," the suit states. Sega says Kmart agreed to purchase Dreamcast systems in August 1999, the month prior to the Dreamcast launch, but by June 2000 Sega stopped sending Kmart units because of delinquent payments.