Nintendo announced that Sega is developing a card battle game set in the Phantasy Star universe. A brief video clip was shown of the game, and it appears that players will collect cards that represent particular attacks and will then play them in the game's turn-based combat sequences. The idea for the game sprung from Nintendo's idea to develop a portable screen for the GameCube and create the ability to link four GameCubes together for portable multiplayer gameplay. Yuji Naka of Sega reportedly felt that such a game would be a perfect fit with the proposed GameCube linkup feature and portability.

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Source: GameSpot