Despite what you may have heard from Register Hardware or various and sundry other media outlets over the weekend, Sega isn't getting back into the hardware business. Yes, the company's releasing a portable device that can "play games," in addition to playing music and movies as well as serving as a digital camera. But those games are Java-based, just like the ones you're playing on your cell phone right now. Well, not right now. But you get the idea.
To really drive home the point, Sega told Unofficial RPG Site, "The Vision is primarily an MP4 video player with some basic games functionality, and not a new handheld gaming machine" (emphasis RPG Site). RPG Site goes on to add, "the Sega Vision isn't actually a Sega-developed device at all, and in fact a cheap Chinese iPod-style alternative."
We know, we know. We're upset too.
Source -- Sega to launch PSP beater in Japan [Register Hardware]
Source -- SEGA: "Vision" is real, not a PSP rival [Unofficial RPG Site]
[Thanks to everyone who tipped us to this!]