>>5818183
Sega's Team Andromeda was dissolved right after. Very easy environment to just lose shit in when everyone's just getting shuttled to different departments or leaving the company.
>>5818185
>an over-reliance on arcade experiences caused a failure in a shifting market.
This simply wasn't true. The DC's most fondly remembered games are arcade-style ones, but the DC was full of more standard fare (and a bunch of multiplats where at the time, the DC version was simply the best option, if only because the other options were N64 and PS1). The success of the NAOMI platform meant that the DC got a lot of high-quality arcade releases with little-to-no cutbacks, but the DC's library as a whole was pretty balanced.
The DC failed almost entirely because of Sega's shitty financial state with how badly the Saturn went leading them to be unable to support the costs of launching and supporting a new system.
It wasn't beating the PS2 in any world, but the DC could have survived with its high-profile lineup of games (something the Saturn never really managed in the west) and reasonably large install base in the short time span the machine was around. It could have reasonably hit OG Xbox sales figures.
also, if we're talking about Sega in the arcade, Sega was one of the few companies (like Namco) to really handle the shrinking arcade market with major success (again, the NAOMI did stupid well and had a bunch of third parties releasing for it)