[thevagrant]

At the time, Sega did ok marketing the dreamcast. They had a huge line up of titles. It was almost everything one could ask for.

The issue was Sony released the PS2 a year later and convinced almost everyone it was far superior with the emotion engine.

Most people I knew at the time were convinced PS2 was next coming of Jesus and worth waitng for. Few people had multiple consoles, so Sega really got crushed by the competitive market and accumulated losses from their past mistakes.

[MegaDeKay]

Give "The Ultimate History of Video Games, Volume 2" a read. Sega America did well marketing-wise but Sega Japan was a shitshow and really dragged them down. Sega could have done much better with the Dreamcast than they did given the cheaper price point, one year head start, and solid lineup of games.

[scheeseman486]

Going too early would mean a hardware spec that'd inevitably get demolished by PS2. I think delaying a year, going DVD and maybe bumping the RAM up would have resulted in a product more competitive, but Sega were completely dead outside of Japan by 99 and they probably couldn't afford to wait

They were screwed either way. The Dreamcast, no matter what form it took, could never have saved them. Saturn was the fatal blow, it's weirdly esoteric tech choices, over-complicated and expensive design making it impossible to compete with Sony's simple, cheap polygon pusher. It just took them a while to bleed out.

Kinda seeing it play out again with the Xbox brand, interestingly.

[hnlmorg]

I don’t think Microsoft have any interest in hardware consoles. They get their money from Xbox subscriptions so for them it’s more about pushing Xbox live rather than hardware.

I get their move though. Hardware is an expensive business and full of risk.

[scheeseman486]

I was referrinng to how the repurcussions of the failure of the Xbox One are still felt 2 generations on, with it seemingly going to end in Microsoft's divestment from the console business.

Though how that'll play out will be different, given Microsoft's portfolio is far wider than Sega's ever was and the weird hybrid-with-PC state of their games portfolio.

[hnlmorg]

Xbox One sold 58 million so it’s a bit of a stretch to call it’s a failure.

The thing you’re missing is the exact point I made in my previous comment:

Microsoft’s strategy is to own the software stack. They’re not really a hardware company. Xbox One was more about leveraging Microsoft as a platform. And Xbox Live is a very competitive and highly popular service. You don’t need an Xbox for Xbox Live. But you do need a subscription to Microsoft for it. The Xbox was just there for people who still wanted to pay the upfront cost for a dedicated gaming system but it was never Microsoft’s priority.

This is also fully in line with how Microsoft has pivoted most of its business over the last two decades: Microsoft Office and Azure AD are great examples of how Microsoft have switched emphasis to subscription-based services.

Much as I prefer physical hardware, it’s hard to deny that Microsoft’s approach is the the future. PlayStation might appear like they’re more successful than Xbox today but in a generation or twos time, people won’t be buying new hardware like they are today. We are already seeing this trend in fact. And Microsoft have a massive head start in the subscription games market. So unless Sony switch gear soon, they’re more likely to go the way of Sega than Microsoft are.

As for Nintendo, it’s hard to guess what will happen there but I suspect they’ll weather the change in consumer habits because they have both the IP and the unique position of being more positions as kids toys than grown up gaming devices.

[scheeseman486]

Xbox as a console is a failure in as much that it's coming third in a market of three and that in response to that, Microsoft are significantly changing their strategy, something they probably wouldn't have done if they were market leader.

But I agree with you on all points and I think the direction Microsoft are going in is the right one, though they should have done it sooner, the Series consoles have felt rather superfluous. They should have been working on adding a solid console UI to Windows a generation ago.

[numpad0]

I can totally see why they thought "Sega is so uncool, hey come to my place I've got a PlayStation" is a ecstatically phenomenal ad campaign in context of late 90s Japan, and with hindsight how close it was to try to shoot a target by intentionally ricochetting the bullet on one's own forehead.