this post was submitted on 29 Jun 2024
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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.
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.
Why did the playstation not have the same piracy problem?
They did, but apparently everyone has forgotten how prevalent swap discs and modchips were.
They did, eventually. The first PlayStation was relatively easy to pirate for (with a mod chip), but it took a while for that stuff to become available. Someone had to go and manufacture the chips, or reverse engineer the check.
By the time that scene matured, Sega released the Dreamcast right into a more sophisticated piracy scene that could apply lessons learned to the Dreamcast right away.
On paper, Sega had more sophisticated copy protection than the first PlayStation did. But it also released 4 years later.