Two demos were presented. One of them consisted in demonstrating, with a video of a Saturn RPG (Panzer Dragon Saga?), that the drive could handle multimedia playback. The second one presented the saving and loading on a zip.
I’ve seen this demo video before, but didn’t realise it was made to demonstrate the Zip Drive. As far as I know, this was the extent of the demo, e.g. Sega never intended to put the game on Dreamcast.
Wasn’t it just SEGA was using the Zip drive was handling playback of the FMV to show off the storage power of the Zip carts at the time. I don’t think Saga was actually working on the DC hardware as such
It was a canceled accessory. According to the article:
IOMEGA , an American company specializing in data storage, was responsible for the design of this accessory.The system was thought out after a strong demand for more storage space than Sega servers could offer to save e-mail and web pages.
Yeah, I know that. But I was just saying I thought SEGA was just showing off the storage by having FMV played off via the Zip Drive. Not that the DC was handling any Saga game code.
Ah, sorry I misread your comment as “I don’t think Sega was actually working on the DC hardware”. 
It would’ve been awesome to have seen PDS ported to the Dreamcast.
They could have added so much more detail. It would have been amazing!!
I doubt SEGA could have ported any of the Saturn code over give it made such heavy use of the Saturn chipset. The game would have to been remade from top to bottom for the DC. Very much like Shenmue or Sonic.
The one game that should have been moved up to the DC and would have been easier for the team was Deep Fear. That would have been a rather nice early DC title IMO