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Dreamcast’s strength was the hardware. Adding a DVD player would have just increased the price out of realistic range. The problem was the software and 3rd party support. The library just could not compete with PS1 and N64 and then the greatest console of all time came out and put it out of its misery, the PS2.
A dvd player wasn’t going to fix the internal dysfunction at Sega.
If you’re going to go back in time to help Sega, you should go farther back and stop them from releasing the 32x against the Saturn.