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The rumors prove to be correct. It is revealed that Lockheed Martin had submitted several plans for a new console over the previous year. In the end, Sega decides to design its own console. The new system, code-named Black Belt, is to be built around a 3dfx\'s Voodoo graphics subsystem. The console will be powered by Hitachi\'s new SH-4 processor, which promises to have a speed of 200MHz and the ability to compute 350 million instructions per second. The Black Belt will have a CD-ROM drive, but Sega doesn\'t have any plans to make it DVD compatible.It turns out the Black Belt is a system that Sega of America is developing on its own. Sega of Japan is also working on a successor to the Saturn, which it calls the Dural. The Dural uses a PowerVR chip. After Sega decides to go with the Dural system, most of the members of the American design team quit the company. 3dfx files a breach of contract lawsuit against Sega.Before year\'s end, Sega renames the new console Katana, a Japanese word for sword. Sega aims to release the Katana in the United States by October 1998, with a $199 retail price.