Sega basically ran out of funds and software sales were terrible across the board (first and third party). I am not sure what was to blame piracy or the launch of the PS2.
By 2000 the Dreamcast was officially dead in Japan with none of its high profile titles like Shenmue 2, Space Channel 5 and Virtua Striker 2 selling big, it was losing exclusives thick and fast as developers jumped aboard to the PS2's Hype Machine. And with EA's boycott of the Dreamcast, Sega lost 2 key franchises Madden and FIFA.
Sega kind of made up for America with NFL 2K, but Europe was all but lost when they failed to bring out a decent Football/Soccer game.
Peter Moore who was then the CEO (Sega OF America) was summoned by his boss, Sega CEO Isao Okawa to Japan. At the meeting Okawa told him that Japan was lost, but Dreamcasts performance in America was beyond their wild expectations. He was given $500 Million (Sega's remaining cash reserves) and told to make Dreamcast a success in America. It was either the American Market or Bust for Sega.
Heeeeyyyy!!!! <Snap>
