The dreamcast failed because of consumer perception.
Theres only so many times you can be burned before you stop walking into the fire.
There was also always the SEGA japan vs SEGA of america thing. It still exists up to this day i think. It hasnt helped the company in the slightest.
Also connected to the first point, there was a Playstation, the competition. The console that went in to save the generation and bring countless new inovative experiences. Why would anyone go back to SEGA and risk it when they could just wait for the PS2?
Of course, SEGA fans like me did. I was the first one to get the Dreamcast in my country. Did it matter? Not one bit. The damage was already done with the Saturn.
Its the classic example that if you drop your system, consumers will drop you. This is the same thing that will happend if the Wii U gets droped 3 years in. The NX will have no chance if its a sucessor to the Wii U. I am completely convinced Nintendo is aware of this and it isnt the case.
