20 Years 20 Days Since the Launch of the Dreamcast. What went wrong?

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Xtasy26

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Poll 20 Years 20 Days Since the Launch of the Dreamcast. What went wrong? (15 votes)

Poor hardware. 7%
Poor software. 0%
PS2 is what went wrong. Too much for Sega to overcome in terms of market share and mindshare. 53%
Other. 40%

It's been 20 years and 20 days since the Original Dreamcast launch. As the below video points out Sega had an actually pretty good launch.

They could have sold couple of hundred thousand more according to Sega in Japan if it weren't' for NEC not being able to provide PowerVR 2 GPU for it's initial launch. But other than that it's North America sales were pretty good. It actually had a much, much better lineup than the launch of the PS2. It had games like the stellar Soul Calibur with it's awesome graphics and game play, NFL2K (which was great) and many other tittles. It also had a descent GPU. Some people think that choosing the Voodoo 2 over the PowerVR 2 was what caused the Dreamcast to fail. But Voodoo 2 lacked 32-bit graphics and it didn't had 2D graphics support you would have to get another chipset for 2D graphics, which would have increased the cost of the Dreamcast in my opinion. While the PowerVR 2 had 32 bit graphics (making games look more vibrant and more colorful vs Voodoo 2's 16-bit graphics) and it had support for 2D which made it ideal fit for Dreamcast's $199.0 launch price tag. Sure the PowerVR 2 wasn't going to beat the nVidia's TNT2 or ATI (now AMD's) the original Rage Fury back in 1999 but PowerVR 2 held it's own for the time it was released (originally in 1998).

Aside form the the graphics, it had pretty stellar lineup. It had 18 different launch lineup including Sould Calibur as mentioned, but also other such as House of the Dead 2. While PS2 had a piss poor lineup.

Based on the documentary it seems Sega's failure seems to go back to the Sega Saturn launch. That entire generation Sega made piss poor decisions. It didn't embrace 3rd party developers like Sony did which resulted in Sony outgunning Sega in the games department with high quality games. While Sega focused on only 1st party titles such as Panzor Dragon and the Sonic franchise. Which isn't nearly enough to hold against Sony's onslaught of 1st Party titles likes Crash Bandicoot and many great 3rd party titles. Also, Nintendo had better 1st party titles like Donkey Kong 64, Mario Cart 64 and so on.

It's shocking how low market share Sega had in the console market. It was down to 5% compared to Sony's 60% and Nintendo's 30%. Yes, Sega had only 5% of the console market in 1999 in North America.

But it still it makes me wonder despite doing everything right with the Sega Dreamcast launch, good hardware with good graphics, good launch line up compared to the joke launch of PS2 line up of games and being 1 year ahead of the PS2 and two years ahead of the Gamecube. Sega was even smart enough to include a modem for multiplayer which helped usher in online gaming on the consoles we see today. What caused it to fail?

I think it all comes down to the Sony and their successful Playstation. Sony just opened up too big of a lead in terms of market share and gamer's mindshare. Once Sony launched the PS2. Sega couldn't sell enough to bring back the momentum back to them despite having a good console launch. In other words the 5 year gap between the launch of the Sega Saturn and it's piss poor lineup of games and it's subsequent 5% market share in North America was too much for Sega to overcome.

But it still makes wonder what Sega could have done with the Dreamcast despite doing everything they did, correctly, in my estimation, to bring them back from the dead.

What do you guys think? What caused Sega to fail in the console market? What could they have done differently?

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#1 deactivated-642321fb121ca
Member since 2013 • 7142 Posts

Dreamcast did not fail the fans, the fans failed Sega. The dreamcast had amazing games, that was not the problem, Sega burnt the trust away before the console launched and never forgave them.

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#2 Xtasy26
Member since 2008 • 5582 Posts
@Random_Matt said:

Dreamcast did not fail the fans, the fans failed Sega. The dreamcast had amazing games, that was not the problem, Sega burnt the trust away before the console launched and never forgave them.

Yes, this was an issue with the previous generation as mentioned in the Documentary. You would think though that Dreamcast would have somewhat redeemed it. Maybe not.

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#3 deactivated-642321fb121ca
Member since 2013 • 7142 Posts
@Xtasy26 said:
@Random_Matt said:

Dreamcast did not fail the fans, the fans failed Sega. The dreamcast had amazing games, that was not the problem, Sega burnt the trust away before the console launched and never forgave them.

Yes, this was an issue with the previous generation as mentioned in the Documentary. You would think though that Dreamcast would have somewhat redeemed it. Maybe not.

I only owned the Mega Drive before the Dreamcast, had no idea about the history until the DC finished. My favourite console ever, Shenmue, Skies of Arcadia, Grandia II were some memorable classics.

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#4 SOedipus
Member since 2006 • 14801 Posts

It's easy to say that the hype for the PS2 killed it. The PS2 was announced around the time the Dreamcast was released. Not only were people used to the PS1 series and controllers, but the PS2 could play DVDs too. People were willing to wait for a new console rather than going with the Dreamcast. Perhaps if the Dreamcast was released a year earlier it would have done a lot better. Sega did a piss-poor job at advertising as well. Sega is what went wrong.

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#5 pillarrocks
Member since 2005 • 3639 Posts

I only had Sega Genesis in the 90's and never cared for the Dreamcast since Sony launched the PS2 which was the better system. I eventually got a Dreamcast after Sega pulled support for the system and went third party. Dreamcast had great exclusives like Sonic Adventure, Shenmue, NBA 2K, NFL 2K, Jet Set Radio, Crazy Taxi but aside from that they lacked third party support. Sony got exclusives from Capcom, Rockstar, Namco, Konami to develop for the PS2 which got me excited in 2001.

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#6 pillarrocks
Member since 2005 • 3639 Posts

@Xtasy26:

Sega just couldn't keep up with the PlayStation 2 when it launched. I love Sega especially the Genesis but for me I hated how they failed to support their systems in the past like the 32X. I remember buying one and renting Knuckles Chaotix and couldn't get it to work so ended up returning. A few months later it was discounted at ToysRus for $40 where I paid $80 for it. For me I think Sega just was terrible at marketing and they thought they would get a headstart at launching the Dreamcast but it backfired on them.

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Blazepanzer24

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#7 Blazepanzer24
Member since 2018 • 437 Posts

Sega produced too many consoles at a time and people lost confidence in Sega. First the CD, then the 32X, then a short time later the Saturn, and not much more or less than 2 years later, the Dreamcast.

Where as the PS1 had a lot more games available, and you knew that Sony would give you a good five to six years with their console, where as with Sega you kinda figured you'd get two...maybe three years. Meanwhile, Nintendo 64 was seen as that console that shortchanged developers with storage capacity and had expensive carts, and Microsoft was brand new to the market, so the Xbox was a big risk at the time.

Had the PS2 been Sony's first console, I doubt it would have dominated the way it did, though it's price point and dvd player capabilities would still lead it to crush the Xbox and Dreamcast in my opinion. The Gamecube would have probably been able to keep better pace in that scenario.

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#8 YukoAsho
Member since 2004 • 3737 Posts

As others have said here, the problem lies with Sega pissing away their goodwill, especially in the west. The Dreamcast did damn near everything right, but people were so burned by Sega turning and burning at the first sign of failure (The Sega CD, the 32X, the Saturn) that few people were willing to give it a shot.

It's sad, really, but it goes to show how much more important relationship-building is than simply putting out products for immediate profit in this business. Had Sega stuck with the CD, the 32X or the Saturn, people wouldn't have said no to the Dreamcast. The PS2 coming out the following year and Microsoft's announcement of the Xbox did Sega no favors, certainly, but at the end of the day, the blame for the Dreamcast's failure lays squarely with Sega themselves.

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#9  Edited By Eoten
Member since 2020 • 8671 Posts

What went wrong with the Dreamcast wasn't the Dreamcast, it was the Saturn. Overpriced, not very intelligently built, limited third party support because of this, poor collection of exclusives, and no good advertisement I can even remember from the era growing up. So the Saturn was so awful, that most peoples more adult-oriented alternative to the N64 was the Playstation. By time the Dreamcast came about, people were already anticipating the next gen stuff a year or two away. So having missed the Saturn, like most people I knew did, there just weren't any exclusives for the brand that anyone cared about anymore, and we were saving money for the next Nintendo and Playstation consoles. Also, I tested a Dreamcast in the store and thought the controller was the oddest, most awkward, uncomfortable hunk of shit I've ever held.

I own a Dreamcast, I bought one this year, and honestly, for its time it was a fantastic system. Nobody did 480P then, and it took a while after until they did. Online gameplay was pretty much non existent until the OG Xbox came out, but Dreamcast had it. But, by time it came out people were pretty much over Sega. And in retrospect, it really didn't have a lot of great games for it that weren't also on other consoles, albeit generally looking better on the Dreamcast. The exclusives were just "meh."

So I think the Saturn sank Sega so hard, so fast, not even the Dreamcast could save it. Like trying to fix a decapitation with a band-aid.

What is sad about this, is before the Saturn came out, Sega of America already had deals pretty much written up and only needed the signature of Sega's CEO in Japan. One of those deals was for the device that later became the Nintendo 64, and the other deal was with Sony to release a fifth gen console they were calling the "Playstation." Sega of Japan refused both and went with the Saturn.