Sega Corp. said Wednesday it is considering stopping production of hardware for its loss-making Dreamcast video game consoles, pulling out of the home-use game console business and instead supplying game software to its rivals.

"We will consider the possibility of halting the manufacture of hardware, although we will continue making game software," a Sega spokesman said.

The video game giant issued a statement the same day saying that it plans to implement "a structural reform on a worldwide scale" of its "manufacturing, sales and distribution system" in April.