Sega recently made some changes in its handling of its European market. Before now, Sony, Infogrames, and Microsoft handled Sega's PAL publishing and distribution, but now Sega will begin publishing and distributing its own games. Distribution agreements for Australia and New Zealand are also in the works.

Sega announced yesterday that the first title it will publish on its own in Europe will be Phantasy Star Online Episode 1 and 2 for Xbox. The game is due to hit Europe sometime this May.