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by missblit 1072 days ago
The Dreamcast wasn't competing against the Playstation 1, the Sega Saturn was. And price and game library aside it had the hardware to back it up. You can see this in gameplay videos of, say, Nights into Dreams or Tomb Raider.

If anything the Dreamcast was competing against the PS2 and Gamecube (despite coming out at an awkward time significantly earlier than the competition)