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The Sega Dreamcast didn´t last 3 years, it was 2 years and three months of life. It didn´t even manage to compete with Gamecube and Xbox because they weren´t out yet.
The Dreamcast was a great machine, but Sega said that with every Dreamcast they sell they were losing money. I think that the main reason why Saturn and then Dreamcast failed was because of the extremely bad relation between Sega of America and Sega of Japan. They didn´t communicate to each other, one wanted one thing and the other another (32X and Saturn cough cough).
I would love Sega to re enter the console market, at least with a handheld ( it´jut a dream of mine), because lots of awesome IPs are lost because of this :(