Before the weekend there was a rumor flying around that Sega was getting back into the hardware market and was set to release a new handheld gaming device to compete with the PSP and DS.  We didn’t post on it because it seemed a stretch to say the least.  Turns out the rumor is only half true.  Sega, which plans to remain a software developer, licensed the rights to their name and games to a 3rd party Chinese PMP developer.  Sega Vision was just that, a vision.

Official quote from Sega:

“The Vision is primarily an MP4 video player with some basic games functionality, and not a new handheld gaming machine…the Sega Vision isn’t actually a Sega-developed device at all, and in fact a cheap Chinese iPod-style alternative.”

[Joystiq]