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The Dreamcast as a console was fine. The Dreamcast as a console made by Sega was problematic. Sega had been burning bridges with third party developers for a majority of the decade by the time the Dreamcast was released. There was nobody left to make software for it.

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If I remember right I think a lot of the original X-box was repurposed sega tech and microsoft made a deal with sega to do that.

My understanding is that Microsoft built a lot of tech in the Dreamcast in the first place, didn't even need to ask Sega to reuse a lot of it. (I've heard it suggested that the Dreamcast can be considered the first Xbox because of how deeply Microsoft was involved from very early in its development.)

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