Did you forget 2001 was a year or something? I'm all for retrospective sob stories, but that statement is sheer lunacy. The PS2 in 2001 is probably the single most impressive year a video game platform has had. Ever.
And as far as the Dreamcast up against the PS1, if you need Shenmue to sell twice as many copies as your total install base to recoup revenue, chances are you're not doing "fine".
Yeah, going to have to disagree here.
Dreamcast had the best 2 years I've ever known a console have in 2000/2001. It was a relentless torrent of releases across a variety of genres.
PS2 was a let down in comparison, however the later years there was no contest and from 2002 the PS2 was by far the best format on the market in terms of releases.
Note: I'm talking more from a European perspective as that is the market I live in.
As for Shenmue, given it started development for the Sega Saturn, and was switched to the Dreamcast before the system had even launched, particularly in the West. I'm not sure what saying you need to sell more copies than your install base is really getting at. Surely any launch titles are showing you're not doing "fine" in that case? I mean Killzone Shadowfall needed to sell a gazillion times more copies than the total install userbase ;)
I think a lot of people forget just how short a time the Dreamcast was on the Market. I mean the Wii U has now enjoyed a longer life. In the US, the Dreamcast discontinuation was announced after the system had been on the market 16 months. In Europe 15 months. Now with that in mind, it's worth reconsidering the software lineup the console actually managed to muster.