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Blood_Tears said:

I would be very surprised if the next Xbox (if it actually releases that is) hits or gets close to 20M. Gen to Gen going from 86M down to 58M down to ~35M. We're probably looking at between 10 to 15M at the very most for this thing. Hell, Sega pulled the Dreamcast off the shelf when it was between 9-10M so it's entirely possible that this thing has a short lifespan on any shelf. No matter how much the most diehard enthusiasts don't want to believe it, Xbox is over from a mainstream hardware perspective.

Sega was bleeding lots of money at the time (mainly due to the arcade market, Sega's main cash cow, crashing into oblivion) and couldn't afford selling the Dreamcast anymore as it was sold at a loss. Sega would have needed to raise the price per console by over $100 to break even, which would have killed the console either way, so they simply pulled the plug while they still could.

Also, dropping sales each gen don't have to mean anything. Just look at NES > SNES > N64 > GameCube - but then came the Wii and beat them all. But I agree that the outlook ain't very good to say the least.