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Sega, like Nintendo, Sony and Microsoft, was once a powerhouse in set-top video game consoles. Two years into the release of their Saturn console, the company started to publicly discuss their next-generation system, the Dreamcast.
The company had already created a history of distrust with their short-lived Mega CD and 32X, which were considered ill-conceived stopgap systems. Saturn sales crawled to a halt and many planned games for the console were cancelled.
While the Dreamcast eventually was released, customer loyalty was compromised and the system suffered poor sales, and Sega eventually exited the console business as a result.