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It failed because the PS2 was clearly going to crush it. But more than that, SEGA's poor leadership killed the DC - not the sales.

SEGA made lots of mistakes before the Dreamcast which they were still paying for, and DC simply was not expanding rapidly enough to fix SEGA's problems.

SEGA's management had a clear trend of jumping the shark and not valuing business partnerships well (e.g. "32x/SEGA CD is no more, get the Saturn" "hey everybody Saturn is launching today btw" "Saturn's not the future, Dreamcast is" "DC isn't growing fast enough to fix our business, we're out of hardware")



I predict NX launches in 2017 - not 2016