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They had everything right with the Dreamcast, but they had no confidence. They killed it after just 1 year while sales were actually rising, and even in that time it managed to get one of the best libraries of that era. Imagine if they had actually continued to support it.
This. Management screwed up multiple times and doomed Sega to be . . . well, whatever it is they are now.
Bad Management (or "good management" if one finanically benefitted from this decision).
Unfortunately I think that Sega themselves weren't the only group lacking confidence in the Dreamcast. In fact, I feel like they put up a valiant fight, with marketing and first-party titles.
Critics and consumers all had an extremely "wait and see" attitude that I think took the theoretical advantage of the incredibly early launch and turned it into a huge liability. People didn't want to commit to buying their next console without seeing what the other offers were going to be. So Sega had to work hard for about two years to keep the real and actually available Dreamcast positioned high in the market while their competitors had the luxury of showing jaw-dropping demos of "potential" hardware (i.e. "Here is some video produced on $50,000 graphics workstation hardware that is made by the same company that's currently in talks to produce our GPU.")
Third-party publishers also didn't want to put any serious budget toward producing games for the Dreamcast, because they didn't want to gamble real money on the install base increasing. This resulted in several low-effort PS1 ports that made very little use of the Dreamcast hardware, which in turn lowered consumer opinion of the console. When some of these games were later ported to PS2 as "upgraded" or "enhanced" versions, that only further entrenched the poor image of the Dreamcast.
I have owned all four major consoles of that generation since they were still having new games published for them. And if I had to choose only one console to keep from that group, it'd be the PlayStation 2, because of the game library. It's huge and varied. I have literally hundreds of games for it, while I only have a few dozen games for the others. But looking at the average quality of the graphics and sound in the games for those systems, I'd also rank the PS2 in last place, even behind the DC.
Sony was a massive juggernaut in the console gaming market at the time. The PlayStation 1 had taken the worldwide market by storm, and become the defacto standard console. It's easy to forget that the console launches for this generation were unusually spaced out over a four year period, and Sony was the company best positioned to turn that to their favour. People weren't going to buy a DC without seeing the PS2, but once they did, many were happy to buy a PS2 without waiting for Nintendo or Microsoft to release their consoles. The added ability to play DVDs at exactly the time when that market was hitting its stride (and more affordably than many dedicated DVD players) absolutely boosted their sales in a big way. Nintendo's GameCube didn't do that, and by the time the original X-Box came to market, it wasn't nearly as much of a consideration.
It's not that they had no confidence. It's that they took Nintendos approach on hardware. Sell low at a loss, and make the money on software.
Problem is, you could pirate every single game on dreamcast. Just get a legit copy of the game (renting, buying and returning, borrow from a friend), and have a CD burner.
Then you could make a 1:1 copy of the game in roughly an hour. As the year 2000 went on, websites even made it easier by posting the game files for download. If you didn't have broadband (many didn't at the time. Most had 56k), you could go to your local library and carry a USB stick.
So every console sold cost them money. And the software was performing abysmally. Plus, PS2 was right around the corner. XBox was an unknown, and Gamecube was assumed to do better than it did.
From a console war perspective, the year 2001 may have been the most competitive year EVER for video games.
I'm not sure where you're getting that Nintendo sells at a loss. They don't have amazing margins on hardware, but they don't like selling at a loss. IIRC, commodity prices and a price drop meant the GameCube was briefly sold at a loss, but it wasn't long, and it wasn't by much.
Whatever else you can say about Nintendo, they are really good at managing manufacturing costs.
Problem is, you could pirate every single game on dreamcast. Just get a legit copy of the game (renting, buying and returning, borrow from a friend), and have a CD burner.
Then you could make a 1:1 copy of the game in roughly an hour.
You make it sound trivial. While Sega left a security hole open for games to be loaded from a regular CD, the official games were released on GD-ROMs, a dual-layer CD with a 1.2 GB capacity.
So first off, you couldn't read them completely in a regular CD-ROM or even DVD-ROM drive. (I'm not counting the "swap" method because it's failure-prone and involves partially dismantling the drive and fiddling with it during operation.) You had to connect your console to a computer and use some custom software to read the GD-ROM on the console, and send the data over.
Once you had the data, you then had the problem of trying to fit a potentially 1.2 GB GD-ROM image onto a regular CD-ROM. A handful of games were actually small enough to fit already, and 80-minute and 99-minute CD-Rs would work in the DC and could store larger games. But for many games, crackers had to modify the game files to make them fit.
Often they would just strip all the music first, because that was an easy way to save a decent amount of space. Then if that wasn't enough, they would start stripping video files, and/or re-encoding audio and textures at lower fidelity.
Burning a CD-R from a downloaded file was easy, but ripping the original discs and converting them to a burnable image generally was not.
Was probably more likely just that they couldn't afford the initial loss anymore because the lenders or shareholders got scared of the PS2 and xbox when they were announced.
Firefly and Dreamcast. Two things nerds are never going to fucking get over.
Damn straight!
"We may have been on the losing side, still not convinced it was the wrong one." --Captain Malcolm Reynolds
Firefly?
Firefly.
Must've been before my time cause I have no clue what that is
Firefly is a cult sci fi show that got one season before being cancelled by fox. It got a tie in movie called Serenity to try and wrap the story.
Space western, kind of cowboy bebop-ish with Nathan Fillion as the lead.
i beg to differ; dreamcast was my life during first and second year uni. i played the hell out of phantasy star online.
This is a really odd way of putting it seeing as the Dreamcast came out before the PS2 and was discontinued before the other 2 even came out.
Sega’s only console success was Mega Drive/Genesis. Probably because “Sega does what Nintendon’t”. Sega managed to sell themselves as the alternative for the kids who were too cool for the SNES.
They couldn’t compete with Sony on that front. Sony was the new cool guy. Dreamcast failed because everybody was waiting for PS2.
So I’d say failed marketing killed Dreamcast.
Nah, they failed because of the Saturn which is one of the worst console flops in history. Dreamcast was just a last ditch effort to regain relevancy and beat the other guys to the punch. Too late once the PS1 was successful.
Also, Genesis was more appealing to adults. That's why it competed with the SNES so well. American adults at the time (prime aged boomers) were much more won over by Genesis's more mature marketing and appeal to American values versus Nintendo which was decidedly marketed to children.
Sega’s only console success was Mega Drive/Genesis.
i mean that's really only true in the northwest. the master system was huge in south america and the saturn was a bigger success than the mega drive was in japan
The numbers I can find of Master System is that it sold between 10 to 13 million units worldwide, so not that much better compared to the short lifespan of Dreamcast.
Mega Drive’s sales numbers isn’t too far off from SNES.
10-13 not including the additional 8 million Tectoy sales, which together meets or exceeds the Saturn and Dreamcast sales combined (with the former outselling the latter)
https://en.m.wikipedia.org/wiki/List_of_best-selling_game_consoles
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The only console piracy massacred
Hey.......I still remember the release date. 9/9/99.
Plus, you could use your dreamcast to talk to a fish. An insulting sarcastic fish.....but the game was narrated by Leonard Nemoy. Sometimes he'd insult you too.....
The PSX/N64/Saturn generation would've been better for this meme. Nintendo had its name, Sony had "two ninety nine", Sega had schizophrenic mismanagement and burnt bridges with retailers
Dreamcast is still my favorite console of all time.
The memory card ..... It was originally designed to even allow gaming on the card like a mini gameboy when disconnected. By now it would be. A steam deck that acts as a controller.... Huh reminds me of the vita.......