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by npunt 2006 days ago
The main issue was that the market really couldn't sustain three consoles at the time [1]. Nintendo wasn't going to go anywhere, and PS2 had a huge impact even prior to its release (including a DVD player was a big decision), sucking the oxygen out of the market in the year between Dreamcast's launch and PS2's. That left Sega, who was struggling financially.

Nobody has mentioned piracy, but it's worth noting that Dreamcast's proprietary GD-ROM format was cracked pretty quickly, allowing games to be pirated with a regular CD-R. This article [2] and HN discussion [3] goes into detail about the technical implementation of the format and how piracy came about. That didn't help Sega's financial position.

For a bit of personal history, in mid-2000 I worked with Sony America on a PS2 title for the upcoming PS2 release while I was a game designer at Pandemic Studios. I would have much preferred to work on a Dreamcast game because the console and its games were just brilliant and forward-thinking. I never got a chance to work with Dreamcast's tooling, but I heard it was quite good. By comparison the PS2 was extremely difficult to work with at the time, the tooling was terrible... we had to hire several consultants and struggled getting it performant.

EA also didn't bring their games over. The stated reason from Bing Gordon was their developers didn't want to work on it, but given my own experience I don't believe it.

[1] Around the time the Dreamcast left the market, the firstgen Xbox launched, and went on to lose $5-7 billion trying to crack the market. Microsoft had the deep pockets that Sega lacked, and their willingness to spend also caused losses at Sony as they locked horns in subsequent generations.

[2] https://fabiensanglard.net/dreamcast_hacking/

[3] https://news.ycombinator.com/item?id=18654199