Sega didn't have the capital to see a console gen through. It is what it is. Making extravagantly expensive games like Shenmue didn't help either I'm sure. Spending 47 million producing a Dreamcast game sounds ludicrous. That's a good sized AAA budget for today's standards, so it would have been astronomical then.
Microsoft also offered them a parachute by offering a place to put a good chunk of their games. So that egged on their decision to retreat from the console market. But those titles ended up dying on the vine due to the market making a drastic change around this period. Sega kind of lost their place in the gaming scheme.








