Just read this this morning:
http://cnnfn.com/2000/04/03/technology/sega/


Here's the quick summary:
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** "FREE" dreamcast **
Sega will offer a rebate of $200 -- the cost of the Dreamcast game
console -- to gamers who sign up for two years of SegaNet Internet
service. It expects to launch this service in the fall, at a cost of
$21.95 a month.Subscribers will also get a free keyboard.

** New VMU **
Sega also plans to have a specially designed MP3 player that inserts
into the Dreamcast console, in the space that is now occupied by the
visual memory unit, for downloading music from the Internet. The
portable device will cost below $100 and its 64 megabytes of disk space
will store about two hours of music.
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If you notice, this doesn't say the MP3 player will be a VMU, just that
it fits in the same slot (so why the cord coming out the side that we
saw in the picture?). I really doubt it'll have 64MB of _disk_ space;
more probably flash.

Well, let's hope that the VMU continues to live as a gaming machine.

-- john