Let's throw on one more: consumers had lost faith in Sega. The Sega CD, 32X, and Saturn (in the US) were all abandoned by the company (for understandable reasons, but still). Why shell out another $200 for yet another system which was going to be prematurely dropped in a couple of years? Which, of course, was exactly what happened.

Looking back and playing my Dreamcast again, I also believe the lack of dual shoulders (only one L and R) hurt because some games simply couldn’t be easily played with the standard controller (and not everyone is buying the keyboard and mouse)