Fair enough, but games routinely sold million copies back then. Even with the reasonable amount the first Shenmue sold across all territories, it was nowhere near enough to recoup the massive development costs. It was part of the reason for Sega's bitter platform-agnostic transformation.
The existence of Shenmue is an anomaly. It's certain that Sega wasn't in the position at the time to invest $50 million into one game, but they did it anyway. I wonder if they hoped Shenmue would take off and sales of Dreamcast would skyrocket. In retrospect it was extremely foolhardy to believe one game could turn their fortunes around.
I agree with everything else you said though. I really do believe a part of my gamer identity died with the Dreamcast. That may sound effusively sentimental and overblown, but there was a certain quality and type of creativity that flourished on the Dreamcast that Sega has progressively forgotten over the years. I really miss those days.
Sega sadly is one of those companies that have trouble selling million copies games since their Saturn days, I think Virtua Fighter 2 is the only one that did that.
True, Shenmue is one of those crazy projects that thinking back, how the hell did Yu Suzuki even convinced them to approve the project? After Saturn, Sega was in horrible financial shape and yes, the dreamcast project and Shenmue really did killed sega as a console maker.
I guess, after the failure with Saturn, Sega really need a killer app. I mean, one game did turn around a console's fortune a few times before. Segasaturn was outselling PS1 until FF7. Xbox would have been long dead if it wasn't for Halo. Sega would have long lost the 16 bit wars if it wasn't for Sonic.
The lost of Sega in the console wars is the worst thing to happen to the industry. Games are losing their freshness and addictive quality. And I see more cookie cutter games every year using the same old formula. Granted, we see some amazing games from time to time but no one these days churn them out in the same consistency that Sega did back then.
Sega has a rich library of amazing games, Phantasy Star, Panzer Dragoon, Daytona, Space Harriers, Grandia, and countless others but Sega just isn't capitalizing on any of them.