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Why the Dreamcast Failed, Sega speaks out (Famitsu, translated by Polygon)

kswiston

Member
Sega's hardware business was always doomed, even if the Dreamcast lasted longer than 2-3 years. As gaming moved from a niche to mainstream market, the amount of money required to compete (both in R&D and marketing) has gone way up. Sega wasn't a big enough company to hang in there. Their past hardware mistakes just quickened their demise.
 

Mikey Jr.

Member
Did you play any of those consoles?

Yes, I had a genesis and a 32x with Chaotix or whatever.

So what? You can't release a system for hundreds of dollars, have 1 or 2 good games, and call it a day. And you can't do that time and time again. Yet Sega did it.
 

thetrin

Hail, peons, for I have come as ambassador from the great and bountiful Blueberry Butt Explosion
The Dreamcast was a great system. It's a shame all the best games have either been ported or been surpassed by superior sequels.
 

ZealousD

Makes world leading predictions like "The sun will rise tomorrow"
Dreamcast failed because the Saturn failed.

Stuff like being forced into price war with Sony was ultimately because the PS1 was a sales powerhouse and the Saturn was a dud. So everybody wanted to wait for a PS2 because nobody cared about Sega anymore.

Honestly, I think that's all it came down to. Sega got so many things right with that system that I really can't blame them for not breaking out. It was all just baggage from the Saturn.
 

cj_iwakura

Member
Yes, I had a genesis and a 32x with Chaotix or whatever.

So what? You can't release a system for hundreds of dollars, have 1 or 2 good games, and call it a day. And you can't do that time and time again. Yet Sega did it.

Sega CD and Saturn alike had many good games. The only one of the three I consider useless was the 32X.


Also, the Saturn was anything but a failure in Japan. It tanked in the US.
 
It had a ton of games, Dreamcast, all you needed to do was burn the cd lol, but not many games to sustain it.

Also, not many people were as savvy with computers back then, now everyone knows how to drag and drop, that sustained the DS.

Heck, grandma and grandpa can do drag and drop with ease.

Before, if you were burning a cd that wasn't music, you were deemed a knowledgeable geek.
Plus a lot of people had dial up and bandwidth caps.
 

Amir0x

Banned
I'll always remember Dreamcast for the system that tried the hardest despite its failed direction. Probably the best failed system.
 

ZealousD

Makes world leading predictions like "The sun will rise tomorrow"
Sega CD and Saturn alike had many good games. The only one of the three I consider useless was the 32X.

Yeah, there were a lot more good games on the Sega CD than people give it credit for. People think it was just Sonic CD and FMV games, but that isn't the case at all. Lunar, Robo Aleste, Android Assault, Popful Mail, Snatcher, Shining Force CD, Vay, Soul Star...
 

kswiston

Member
Sega CD and Saturn alike had many good games. The only one of the three I consider useless was the 32X.


Also, the Saturn was anything but a failure in Japan. It tanked in the US.

Even in the US, Saturn had close to 250 games. Dreamcast was basically in that same range. Sega CD had over 170.
 

Mikey Jr.

Member
Sega CD and Saturn alike had many good games. The only one of the three I consider useless was the 32X.


Also, the Saturn was anything but a failure in Japan. It tanked in the US.

Ok, so you were ok with the quick discontinuation of both of those systems?
 
Everything he said makes snese, but the build up to the Dreamcast created a situation that only a mega success could pull the company out from. Sega losing so much good will and money with the 32X and saturn is what really killed the system alongside the PS2. The company was so mismanaged as the two main branches battled for direction. Not good.
 

Ragnarok

Member
Tainted brand name + no DVD drive is what did it. Just having a DVD drive would have been a huge help. Affordable system with DVD capabilities out a year before ps2 with strong software lineup could have made it a real contender. DVD not only makes it a multimedia machine, but it increases storage size significantly and most importantly would have discouraged piracy. No Madden or square hurt it a lot too although I think the 2k series trounced Madden.
 

kswiston

Member
Ok, so you were ok with the quick discontinuation of both of those systems?

32X was the only time Sega really screwed over their fans. They advertised it as a step-up to the 32bit generation for those who wanted a cheaper alternative, and promised to support it even after the Saturn was released. Less than a year later it was cancelled.

Sega CD was on the market for 4 years before it was discontinued in 1996. The system was never particularly popular, and Genesis sales were winding down, so why would they continue producing it?

Saturn was dead at retail in the West, and therefore discontinued early (after 3 years), but the gap between it and the Dreamcast wasn't any smaller than the gap between the Xbox and the 360 (and longer than the gaps between the Gameboy Color, Gameboy Advance, and Nintendo DS).
 
I think Genesis vs SNES is more impressive than Dreamcast vs PS2. I'd say they're closer tech-wise (with the Genesis being ahead in more important ways than the few ways the Dreamcast was ahead of the PS2) with a similar time gap.

To be fair, the SNES used a super underpowered CPU. If the SNES used a quality CPU than the SNES would have performed closer to a GBA. I still can't believe the horrid CPU Nintendo chose.
 

IN&OUT

Banned
SEGA was screwed but they went out with glory. It was the last time we saw attack ads.

TzvzfF0.jpg


Never forget.
wqKphBC.gif

They mocked PS2 at first, two months later the entire company got wiped to the floor!

That's what happen when you mock the king!

ps2-sales-wii.jpg
 
Dreamcast launch might still be my favorite launch to be around for.

Me too, it was the first console I ever saved up for and bought myself. Getting to actually have the system in September when it came out, as opposed to waiting til Christmas, was awesome. I remember I was 14 or 15 at the time and my grandma drove me to the midnight launch.
 

Frux7

Banned
Oh yes.

Dreamcast, first four months + holiday season, USA:
~1.48 million units sold to consumers

Dreamcast, first four months + holiday season, Japan:
~0.56 million units sold to consumers

Generally speaking, the Dreamcast did a MUCH better job in the USA than in Japan.

It was actually Japan's very, very poor Dreamcast sales that really did it in for the console.

By early 1999 (four months after launch), the Dreamcast was doing Wii U-level numbers in Japan. It got a price cut in June, but that didn't help, and by January 2000 sales of the Dreamcast were again in Wii U-level territory.

Not to mention, Holiday 1999 was absolutely pathetic for Dreamcast, so third-party support was dying domestically.
By August 2000 the Dreamcast started going below Wii U numbers in Japan...fizzling out at rock bottom in Holiday 2000 before getting discontinued January 2001.

Really, the Japanese did not care about the Dreamcast at all...it was quite dead in that territory.

The DVD format is what really killed the Dreamcast in Japan. A lot of Japanese have NYC sized apartments. A lot of them said, why waste space by getting a Dreamcast and a DVD player when we can just get a PS2.
 

lmpaler

Member
The Dreamcast failed because Sega ran out of money.

Systems don't often succeed because they blowup right when released, they succeed because companies keep pouring in millions in on them to make sure they stay afloat no matter what. With the exception of the Playstation 2 and Wii (and MAYBE the Xbox 360) this is pretty much the case for all modern systems. The 3DS was a failure until Nintendo put in a strong marketing campaign, lowered the price, and added Mario Kart. Hell one could say the same with the DS. The Xbox was literally paid for for its position. The Playstation 3, Vita, and Wii U were all dead on arrival and had/is having/is going to have, their owners pour in millions upon millions to have them stay afloat. The Dreamcast failed because Sega ran out of money pure and simple. If the Dreamcast was owned by Nintendo, Sony, or Microsoft the system would have been out for at least another three years.

Xbox was a $4 billion loss before 360.

I remember loving the Dreamcast. So ahead of the rest at the time. Lol NFL on 56k.
 

IN&OUT

Banned
The DVD format is what really killed the Dreamcast in Japan. A lot of Japanese have NYC sized apartments. A lot of them said, why waste space by getting a Dreamcast and a DVD player when we can just get a PS2.

PS2 was favored because it was a more capable machine, people saw MGS2 trailer back in 2000 and realized that DC is nothing compared to PS2. add to that DVD playback and BC to PS1.
 

Teknoman

Member
So sony actually approached sega? Reminds me of that guy from The Incredibles. Just wanted to be a super hero and team up with the famous ones, got shunned, then decided to crush them all.

At least thats how I remember it :p

PS2 was favored because it was a more capable machine, people saw MGS2 trailer back in 2000 and realized that DC is nothing compared to PS2. add to that DVD playback and BC to PS1.

I'm sure the Dreamcast could've pulled off something like that... the file format was the thing holding it back.
 

King Boo

Member
i remember owning a dreamcast. i think i read the news about sega's failure in a egm magazine, and i was so pissed i got a failed system. but looking back, it was a decent console. power stone, house the dead, skies of arcadia, sanic, phantasy star online...it had good games.
 

rrs

Member
Even with Sega's death in the console market, their arcade games and console games released later that generation were awesome and kept SEGA from dying for good. The Dreamcast was just a taste of the tasty stew SEGA was cooking.
 

Frux7

Banned
To be fair, the SNES used a super underpowered CPU. If the SNES used a quality CPU than the SNES would have performed closer to a GBA. I still can't believe the horrid CPU Nintendo chose.

Selling underpowered tech seems to be Nintendo's modus operandi. As everyone takes two steps towards the future Nintendo takes one small step. I just wonder how long they can keep doing that before they are left behind.
 
However, I really miss Samba de Amigo, and the Wii version just wasn't the same.

High five my friend.

What a blast that game was. Such a huge shame the Wii version was a let down. Not by the quality of the game but by the shoddy controls that were off.

The Dreamcast was way ahead if its time. During that point I was a big Sega fanboy and really hated everything Sony at the time due to them pretty much demolishing the DC.

One of my fave systems ever. I was quite emotional on that day :(
 
dat launch lineup

Sonic Adventure
AeroWings
AirForce Delta
Blue Stinger
Expendable
Flag to Flag
The House of the Dead 2
Hydro Thunder
Monaco Grand Prix
Mortal Kombat Gold
NFL 2K
NFL Blitz 2000
Pen Pen TriIcelon
Power Stone
Ready 2 Rumble Boxing
Soulcalibur
TNN Motorsports Hardcore Heat
Tokyo Xtreme Racer
TrickStyle
Virtua Fighter 3tb

My roommates and I played the heck out of Power Stone, House of the Dead 2, NFL 2K, Hydro Thunder, Crazy Taxi, etc. So many good games in the early years for the system.

*Puts on super flame shield.* It may have had tons of sales, but its one of the ugliest consoles of all time, IMO. Also only two controllers ports? Please....
 
So why did the system fail? "In essence, it was a pure matter of cost," replied Takezaki. "It was because we were forced into a discount war when we were already losing money on system sales. Sony [whose PlayStation 2 came out March 2000 in Japan] was part of the team that developed the DVD standard, and they could develop a system around that completely internally with their own chips. Sega, meanwhile, was buying everything from outside companies, so it was at a distinct cost disadvantage. We couldn't easily cut costs on manufacturing, the software wasn't selling the numbers it used to, and then we were forced to discount the system."

Sounds like current Wii U situation altrough competitors also use lot more outsourced parts in their machines then back then.
 

SegaManAU

Gold Member
My Favourite Sega console by far. So many fantastic games & it was such an awesome time for gaming.

R.I.P Dreamcast
 

WolvenOne

Member
He is right about Sony having a pricing advantage. When you're a major decision makers behind which electronics/computer industry standards are going to be implemented, you're inherently going to end up with a lot more design flexibility.

For starters, you pay fewer licensing fees, which is one of the reasons why the Wii U has a Blu-Ray drive, but not the decoding software to play Blu-Ray movie discs. As cheap as that software is, when you multiply that cost by millions of units it adds up.

Then of course, when you know what a standard is, and what it'll look like ahead of time, you can design your system around it early on. This is why the PS3 had a Blu-Ray drive, despite the fact that they weren't completed until very late in the PS3's development phase.

Sega and Nintendo, don't have advantages like that, Sony and Microsoft do.
 
Tainted brand name + no DVD drive is what did it. Just having a DVD drive would have been a huge help. Affordable system with DVD capabilities out a year before ps2 with strong software lineup could have made it a real contender. DVD not only makes it a multimedia machine, but it increases storage size significantly and most importantly would have discouraged piracy. No Madden or square hurt it a lot too although I think the 2k series trounced Madden.

This is a good point. The ability to play DVDs is a trivial feature for a console now, but I remember that was a huge selling point for the PS2 back in 2000 when DVD players were still expensive. I was working in a game store at the time and I had more than a few people tell me they were getting a PS2 because they figured why just buy a DVD player when for around the same price they could get a machine that plays DVDs and games.
 

JordanKZ

Member
I adore the Dreamcast. I actually own four of them, mostly because the disc drives kept dying. But still... It gave me some of my favourite games ever. One of those is actually my favourite game ever. Rez is a god damn work of art and I'd love to see anyone disagree.

 

Madness

Member
"I think the Dreamcast really symbolized the changing of the guard that took place around that time"...

This. It marked the change when huge international corporations that weren't built specifically for gaming were starting to take the lead in console development and video game entertainment.

That generation, not only did Sony become #1 dominantly but Microsoft became #2.

You can draw parallels with Nintendo. They are starting to sell hardware at a loss, pushing newer technologies and gameplay abilities while others then copy and take further etc.

Dreamcast was a great system, but nothing could have prevented it's demise really.
 

Yasae

Banned
The knife kept plunging deeper, too:

Peter Moore said:
To our Sega fans,
First, I want to thank the legion of loyal Sega fans for their unwavering enthusiasm and support over the past years - your dedication has truly been invaluable.

As you all undoubtedly know, this year Sega is transitioning from a hardware manufacturer into a platform-agnostic third party publisher. During this change, Sega has had to make some very difficult business decisions, including the cancellation of Shenmue II for Dreamcast in the U.S. market.

I realize that this announcement is a difficult one for many people to swallow, and I sincerely apologize. While I cannot detail all of the reasons that led up to this decision, I can tell you that it was made with the long-term interests of Sega fans in mind. No matter how difficult it seems, I want you to understand that any difficult choices that are made during this transition time are based on one bottom line: ensuring the longevity of beloved Sega franchises, including Shenmue. Sega is working hard to make the necessary decisions to drive our business forward while at the same time continuing to support our loyal fans.

Although the company may be changing -- we are still Sega. Although the ride has sometimes been rocky, our promise to our fans is this: We will continue to push the boundaries of gaming with new content and technology. We will continue to deliver new and innovative games. We will continue to put out the games that no one else can. We will continue to be Sega and bring you only the best that gaming has to offer.

Bear with us - the ride is going to get a lot smoother...

Best Regards,

Peter Moore
President & COO, Sega of America
 

soultron

Banned
I adore the Dreamcast. I actually own four of them, mostly because the disc drives kept dying. But still... It gave me some of my favourite games ever. One of those is actually my favourite game ever. Rez is a god damn work of art and I'd love to see anyone disagree.

I disagree.
Rez HD
is better. ;)
 

AniHawk

Member
My roommates and I played the heck out of Power Stone, House of the Dead 2, NFL 2K, Hydro Thunder, Crazy Taxi, etc. So many good games in the early years for the system.

*Puts on super flame shield.* It may have had tons of sales, but its one of the ugliest consoles of all time, IMO. Also only two controllers ports? Please....

actually the two controller ports really bugged the shit out of me. sony basically kept local multiplayer way down when sega, nintendo, and microsoft had systems with better support for about 6-7 years running.
 

Yasae

Banned
Both the CD and DVD formats were co-developed by Sony. They had that shit on lock. I imagine smaller laser pulsewidths were more due to the linear progression of manufacturing shrink rather than innovation. It's all very similar tech.
 

Celine

Member
That generation, not only did Sony become #1 dominantly but Microsoft became #2.
Xbox sold more or less like the GC.
It's like saying nowaday that PS3 (or 360) is #2.
It doesn't matter, they tied.

GC and Xbox were fairly distant alsorun system compared PS2.
 

Intru

Member
I honestly haven't found much of anything on the system that I actually enjoy playing (I do like the original JSR). I'm not a fan of rythm games or fighters and Shenmue and Sonic Adventure have aged absolutely terribly. I kind of regret buying one, though I may try Skies of Arcadia sooner or later.
 
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