If you’ve only gotten into gaming in the last decade or so, Sega’s hardly a blip in your memory. They make a few obscure games that people go nuts over, for some reason. Sega used to be one of the big guys, though, and its exit from the console industry is a weird tale, retold by YouTube channel Did You Know? Gaming.
If you checked out Blake Harris’ Console Wars book last year, you already know that Sega worked with Sony on console plans that were eventually scrapped in favor of the Sega Saturn. That, though, was part of what got Sony into the industry in the first place. Sega then worked with companies like 3dfx and Microsoft on various console plans. A year or so after the failure of the Dreamcast, the original Xbox would release.
Sega met with Microsoft at that time to try to work out a deal to get Dreamcast compatibility on the Xbox, though a difference of opinions about the importance of Internet connectivity would cause that deal to fail. Interestingly, Sega was the one insistent on Internet connectivity.
The video goes into more depth on these and other tidbits about one of the most beloved and ill-fated consoles in the industry’s short history.