It was actually the opposite problem... they sold plenty of hardware. But they lost money on every sale and didn't make it back on software purchases as was the plan.
In fact, the Dreamcast had sold more than the Xbox and Gamecube combined for the first several years of their lifespan.
There was also the playstation 2 releasing about 6 months after the dreamcast, with dvd capabilities, when dvd players were expensive as fuck. People were using them as a DVD player. Basically the same reason the playstation 3 sold decently at all in it's first years.
Never heard of that. Audio cd's have been around for a while by then. And cd players weren't expensive. But I could be wrong. I was not really in to consoles at that point.
Sega was too early with several innovations like online game downloads, which meant they weren't profitable enough. Technically however they were ages ahead of the competition who later gladly absorbed their knowledge.
Wasn't the deeper story on this a bit more sad? I thought Sega made a bunch of rash idiotic decisions with their product lines, not originally because of Nintendo and Sony, but because of NeoGeo?
They were so convinced NeoGeo was going to be the be all end all of gaming, both home and arcade, so they shotgunned a bunch of ideas out then panic killed several of them?