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Sega, the Japanese electronic games giant, is joining forces with two
American cable TV operators to launch a channel that delivers games software
directly into the home.

The Sega Channel, run in collaboration with Tele-Communications and
Time Warner, will start testing in selected homes this autumn. A national
service should be running by next year.

Subscribers will pay around $10 a month for a cartridge that plugs
into their games console and also connects to the cable. They can then choose
from about 100 games.

Retailers are worried that for $120 a year, the cost of only three
games, subscribers will have access to 100 games. They want Sega to send
only older games by cable.

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