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Well, when you can simply eat the losses of the Xbox without even blinking, you're in a different world. Microsoft had goals beyond just existing in the home console space from the very beginning. The 360 was closer to what they envisioned but I'd guess that the 720 will be much more in-line with their purposes of being a major media interface. They wanted what Sony had and beyond.

So, yeah, money. Who knows what would have happened if Sega had unlimited financing, because the DreamCast was awesome. However, there is still the fact that Sega has screwed up a lot of their own IP, so they might have killed themselves regardless.