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Darwinianevolution said:

Sega was mortally wounded before the Dreamcast. All that money spent on the Sega CD, the 32X, the Neptune, the lackluster developement of the Saturn, making not one, but two Shenmue games (their budget was tremendous), SegaNET, and a lot of other things meant that the Dreamcast couldn't have fought the competition even if its sales were decent. The PS2 just nailed the final nail in the coffin.

 


this.

Sega was grasping at straws with the Dreamcast, hoping for a miracle. they had exhausted their bank with all of those failed projects. and their word of mouth (in terms of hardware) was extremely weak in the West by the time of the Dreamcast because of so many devices that they had created and not significantly enough supported