The classic list of mistakes.
Too many add-ons
Too little support for the various add-ons
Too expensive for the add-ons and systems
Too complex to dev for
Not having quality 1st party software lined up and ready
Bad marketing
Basically, that's the laundry list that Sega went through from mid Genesis lifespan all the way to DC launch, and by that time it was too late. Too much damage had been done. Devs didn't give DC a chance from 3rd party, fans were already burned, Sony had captured a ton of the market, and Nintendo always kept its core base around with Mario and Zelda.
Enter Microsoft, Halo, and the path that led to today. More Sony domination, MS still relevant, Nintendo still pumping out 1st party to a dedicated base. Honestly not a ton has changed since the death of Sega when you think about it. The rise and fall of extreme casuals and the migration towards mobile for many of those has been the most noteworthy event in the 15 years since DC launch.
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