SEGA DREAMCAST 2 - A Dream Becomes A TOTAL NIGHTMARE! - Gaming History Documentary 

I remember in like late 90s/early 00s, a kid at school was telling us of dreamcast 2 prototype that had VR support but also the ability to feel in the game. It got cancelled because a kid got sliced in half from a lightsaber in a star wars game.

I miss sega making hardware they were truly innovative with their ideas

We didn't deserve the awesomeness that was the Sega Dreamcast let alone a sequel. R.I.P. NFL 2k

I would buy any new console released by SEGA. Heck, I've even bought the Astro City Mini and I think it's wonderful. A brand new console that would allow us to play HDMI quality old Genesis, Saturn and DC games + some newer SEGA titles (released in the past 20 years, such as Sonic Mania, Sonic Generations or Outrun 2, Virtu Fighter 4 & 5, etc.).. that would just be a DREAM cast true!

Every time Dreamcast 2 was brought up in the media, my heart beat a little faster but ultimately sank deeper. This was a great breakdown on the history of the DC 2 rumors. Maybe one day they won't be rumor!

Even if Sega themselves were never actually involved with the non-existent project, if there's one thing your other videos have taught me it's that a mix of stupid ideas, excessive promises, and various team members falling out with each other and getting sidelined or removed is *really* keeping that classic Sega spirit alive.

Sega was and still is in my opinion the greatest video game company of all time. Despite all the horrible decisions that ultimately led to their downfall I have nothing but love and respect for them. However the Dreamcast 2 lives up to its name: a pipe dream. I as much as I want it to happen it can never be. Sucks I know.

I've read about this back when the Dreamcast 2 was all over Facebook, but I never thought that the story ran this deep and was this stupid!! Thank you for the content you and Top Hat Man make. 👍

Good video! Funny thing though: there was TECHNICALLY a DreamCast 2, although most people didn't realize. The original DreamCast was based on the NAOMI arcade board, and there was a NAOMI 2 arcade board that would've been the specs for a hypothetical DreamCast followup. Modern Vintage Gamer did a video where he showed what a pain it is to play NAOMI 2 games without an emulator, it's quite the process LOL.

The reasoning for Proect Dream's downfall sounds exactly like the reasoning for Sega's downfall, especially the Saturn story.

True story: we sadly ain't ever gonna relive those awesome days again when PS2, Dreamcast and GameCube were around. That sweet moment in gaming history where even local co-op was a huge thing in games.. To me, the PlayStation 3 and Xbox 360 days was when it peaked. Now it's all about remasters sadly.

Nearly every year some clown appears claiming they'll make the next Sega console, the rose tinted nostalgia goggle wearing crowd freaks out and spreads misinformation, then a few months later nothing happens then it gets forgotten just in time for the next clown to show up.

I wish Sega would develop another console....I would definitely get it. Competition is always good

I love my Dreamcast! I still play it, I have Shenmue loaded up right now. I would kill a man for a Dreamcast 2 to exist.

I remember reading about it back then and thinking "I would love it but it's never going to happen", and then I never heard of it again and completely forgot about it. Thank you for bringing some light on what that was all about :)

Shenmue, Sonic Adventure, Power Stone, House of the dead, Jet Set Radio, Marvel VS Capcom, Nba 2k, NFL 2k…the list goes on. The Dreamcast made all of our dreams come true! Late 80/90’s babies know lol.

I laughed at the way you said "Unbelievablely Stupid" @ 1:27. That's the whole gaming industry right now in two words.

Dreamcast 2 came out in 2001, but we all know it today as the original Microsoft XBOX. Just notice the upgraded style of controller, it too was a 4-Player console, and the way it was at times bundled with games like SEGA GT 2002 and Jet Set Radio only now exclusive to the original XBOX. Dreamcast even ran on Windows CE which even proves how far back this theory goes

Funny, the Dreamcast will always be my favorite system and so I’ve daydreamed about the Dreamcast 2 for years now. Even made a fake website dedicated to a fake launch of the Dreamcast 2 for a web dev class a couple years back. Cheers to the console the world deserves, but not the one it needs right now 🥂

I think the DC was the most involved with console I worked with as I was part of several code busting groups and also having a go with the Linux builds back in the day. The DC lived on much longer than we expected as it sold still in Brazil til I think 2005 or around then but also Asia where the DC was used as a VCD player with a clip on monitor addy and there are still running DC's in both areas today especially as emulation for such was super easy. When I gave it up I was still working on back engineering the Xbox OG releases that were hastily ported from the DC e.g. Sega GT 2000, PGR, Headhunter 2 to name three easily repurposed DC titles tied up in a translation wrapper to write code from Windows CE to Xbox coding platform.

I am not into modern consoles.. at all. But if Sega released a new one I would buy it in a heartbeat! Yes I am such a Sega fan boy :-D

Sega had a lot of people who were very passionate about making great games and consoles. It's a shame that, for the most part, they kinda sucked at the marketing and business side of things. They were like those genius artists who are very original and passionate about what they do, but don't know how (or don't want) to sell themselves.

The original Xbox was the closest we ever had to a dc 2

I miss the Sega Hardware days, they always had innovative ideas and always seemed to be on the bleeding edge of some technologies. The Dreamcast's life was to short, but it was a great one. I still have my Dreamcast and all the games from back in the day that I owned and I'll never get rid of it (I've gone as far to replacing the laser in the system to keep it running).

I want a NightmareCast.

Haha, awesome! Lady Decade used a Dreamcast 2 image I created years ago! At the 5:48 mark. So cool, I feel honored :-)

I would argue that the well-wishers got what they wanted but not as they expected it. We did get a follow-up to the Dreamcast; it's called Xbox. The Sega Chihiro arcade platform is Xbox but with extra system memory, and appeared in sega's lineup before ringedge or Lindbergh.

I just love that the Dreamcast is still getting games.

Maybe it’s wishful thinking but after the Switch launched I’ve completely changed my thoughts on a new sega console. I used to say that it would be impossible for them to re enter the market, but the gaming landscape has changing so much in the past 20 years. Nintendo proved that you don’t need the best hardware, or the shiniest graphics to succeed in the gaming market. The switch is currently at 90 million units sold, which dwarfs the Xbox One’s 50, and that came out like 4 years earlier. I know it’s never going to happen... but I really do think if Sega returned to the console business, there are ways they could be successful. As long as they have a good game library, I think they would be a great fit for the hybrid/portable market. I mean, even steam is releasing the steam deck, so it’s a growing and lucrative portion of the gaming market. Or, maybe they do make a powerful next Gen system, that competes with the PS5 and Xbox. The Genesis came out a few years after the NES, so why couldn’t they repeat that success with this generation? The switch also released a few years later also, and look how well its sold so far. It will never happen... but I can always dream. The PS5 and Xbox have been underwhelming to me... not only that but the direction that modern consoles seem to be heading is overall disappointing to me to. I just miss the old Dreamcast days of putting a disc in and playing, nowadays everything is live service, with update after update. It gets so tiresome, I just want to buy the newest game and play it. I just wish we could go back to how it was. Thanks for listening to my Ted talk.

Will have a soft spot for the Dreamcast. My uncle’s company had a huge part of helping sega build the system. Spent the summer before launch in the UK playing games in Japanese on a prerelease unit.

I really didn't take any of that hype about Dreamcast 2 seriously at the time, and hearing how it played out doesn't make it any better. There is always a vague hope Sega could get back into hardware, but given the recent sell-off of arcades in Japan it gets less and less likely.

The story of this Dreamcast 2 always make me laugh, is so stupid to think nowadays that Sega is interested to go back to make consoles again

I despise fake news. Sega really does need to get to work on an actual Sega Dreamcast 2.

The Sega Dreamcast 2 has already been released. It was released 20 years ago -- The Original XBOX. The Original XBOX was co-designed & co-developed by Sega & Microsoft. Just look at the original XBOX's controller. Now, the reason to why most people do not even know what I'm saying, other than "true die-hard" XBOX enthusiasts, is because Sega & Microsoft's partnership didn't work out. & both are to blame for that. Sega, for whatever stupid reason, yet again, didn't want to add a 2nd analog-stick onto the controller. If they had their way, it would've been the 3rd console they had built, that would've been without a 2nd analog-stick. They also didn't want the console to be able to play DVD's. & Microsoft, didn't wanna learn from Sega either. Microsoft also, didn't want the console to be able to browse the Internet, which was a feature that Sega wanted to be added. But, they both wanted to build the most powerful console. & at the time, it was the most powerful gaming console. None of the other consoles could compare to its graphics, its sound, nor to how the multi-platform playable games performed. The only two flaws that it had, was very long loading times, as well as at times, games would suddenly freeze, & you'd have to restart them. 😎

I remember getting a Dreamcast just to hold me down until the playstation 2 dropped, but i seriously "really" enjoyed the hell outta that Dreamcast, it was really a great console! Too bad there was never a Dreamcast 2...

Your one of the few people i watch on youtube for retro gaming consoles,the quality,presentation and information is top notch,your very professional but at the same time laid back and welcoming.Keep up the good work Lady Decade.

Honestly, the rumors flying, the fact that one group didn't know what the other group was doing... it is the most on-brand Sega thing I could think of. :D

I love how you been able to find consoles that no other RU-vidr has ventured on

If Sega was to release a new console they would need to acquire all there old ips an triple A games. Sonic adventure 3, PowerStone 2, Jet Grind 2, Crazy Taxi 2, CODE Veronica Remake, Shenmue 3, would be a great lineup for a sega dream cast 2. It would be cool if they kept a small lcd light up screen on there controllers that show battery life, maps, health etc. It would be so great if they came back. But it wont happen, sadly.

I always saw the original XBox as being the spiritual successor to the Dreamcast anyway especially considering that the Dreamcast game that impressed me the most was Metropolis Street Racer, a game which led to Microsoft hiring MSR developers Bizarre Creations to produce an MSR follow-up, Project Gotham Racing, to be one of the big launch titles for the XBox. That's in addition to some other major Dreamcast titles like Jet Grind Radio and Crazy Taxi getting XBox-exclusive sequels, and then things came full circle with Sega's Chihiro arcade system being based on XBox hardware.

This whole Dreamcast 2 campaign had mad levels of "the cybermatrix 100" energy.

Your vidoes are great. I don't remember which vid it was but you recently had a brilliant segue into your ad for video game magazines by explaining how you found all of your info during research. Keep em coming!

I always wanted Sega to continue the hardware market. Doesn't need to be dreamcast related. Maybe go back to planet names. Anyway, anyone with a half functioning brain knew that this was fake back then. But we all wished it was real.

Only thing the Dreamcast was missing was dual joysticks on the controller. To this day DC is still one of my favorite consoles.

aww man I remember this whole dreamcast 2 story I was amped for it. Then it all kinda died,always wondered what happened to it and if it was real or not,thnks for clearing it all up here Lady Decade, what a wacky story! I loved the Dreamcast and still own mine with the original box and a bunch of all the top games. Its a real shame Sega doesn`t get back into the console market, cus honestly if they did do a dreamcast 2 or other system and had the right launch games I think it would sell very well

I do remember hearing somewhere that Sega was going to standardize the Dreamcast name as it's own series of consoles, trying to do what Sony was with the PlayStation. They wanted the Dreamcast to eventually have follow ups, but of course the names for these would never come to be. If they did plan on making a Dreamcast 2, whose to say it'll be called that or do something like the Xbox, where it always has 'XBOX' in the name, but there's a subtitle instead of a number like the PlayStation. Edit: This could actually be a reality now, as Sega of Japan CEO Haruki Satomi stated in an interview with VG27 that they are currently working hard on this new 'Super game' that they plan on releasing by / before March of 2026. It's supposedly going to be very diverse & widely available, & that it will revive many franchises like Crazy Taxi, OutRun, After Burner, & Jet Grind Radio in the form of remasters, remakes, re-releases & brand new games. Not much else is known about the product, aside from Haruki stating that it would be popular with millions everywhere, & that they've been working on it for quite some time, but here's hoping it's something mind-blowingly outstanding. I'd love to see this project turned into Sega's re-entry into the videogame console market, & for it to do really well & bring in new innovating ways to play legacy Sega titles everyone should be able to play.

I thought for sure you were going to mention how the Xbox was basically the DC2, wasn't expecting all this!

Who needs a Dreamcast 2 when new games are still coming out for the DC even now 😏. It's still thinking...

The fall of the first was enough for me. Loved this console so much. Grandia 2, Shen Mue 1-2 - Ikaruga, Soul Calibur, DOA 2, Virtua Tennis 1-2 was over the top!

I didn't know of all this stuff, as I deliberately avoided it at the time. I'm not surprised some completely amateurish behaviour was involved. Why do big fans of something always think they can brash their way through these massive issues?

I have every Sega Console and loved them. I even have second systems with MODEs and HDMI kits installed. With that I still have a pc hooked to my pc and use retro arch more just out of convenience. So the idea of a little sega branded pc to play all their games is exciting but I would probably still end up using my htpc.

I appreciate that Sega got out of the console market. The console market is already congested enough as it is. The more consoles there are, the more you have to buy to play the best games. I wish it would go back to just two consoles.

Finally I'm glad this is being talked about.

This was one of those rumors that in the back of my head I knew wasn’t true but wished it would work out for them.

Wonderful video, LD! I vaguely remember this! As much as I wanted it to be true... I also knew the name "Dreamcast 2" was dumb, for the reasons you mentioned here! I mean if ya know Sega, ya know they only use numerical names for revisions, so I just took them with a huge spoonfull of salt. Still dreaming though! Not for a DC2... but maybe a Dreamcast mini classic? I think that's far more reasonable to ask for, right?

They definitely can do it now. But they seriously will have to do a lot of their first party exclusive. They don't have to do it with a CD they could do it digital plus now people staying home too.

The ironic thing about this project is that- historically speaking, 'Dreamcast 2', isn't an unfitting name for whatever you'd call what the ProjectDREAM team initially set out to accomplish with the hardware Dreamcast-PC hybrid. Thanks for this, I remember getting swept up into this hype a few years behind a a high-schooler. Always wondered what actually happened with that

Your content has cable tv production value. You obviously really care about what you're doing and it shows. Sub.

The Dreamcast rocks! Would've loved to see the Dreamcast 2.

6:57 "the sega dreamcast 2 is the most rediculous name for a console" Sony looking at the ps2: 😬😬😬

Dreamcast 2 came in November 2001. They just called it the Xbox

To be honest, its so easy to build a new gaming console in this era, you just build a nice case and slap some of-the-shelf processor and GPU. Of course i'm a bit exaggerating but it is much simpler in terms of design than 10 or 20 years ago, when each console was a totally unique custom design.

Dreamcast 2 did come out, it's called the Xbox. Dreamcast was based on Sega NAOMI Arcade hardware, the Xbox hardware is a match for Sega Chihiro Arcade hardware, Peter Moore lead the Dreamcast Hardware Division, Peter Moore lead the Xbox hardware division, all of the planned Dreamcast 2 games were brought over to Xbox, etc.

People still make Dreamcast games because it was an easy system to program for.

By far, one of my absolute favorite consoles ever. I don't even really like Sega consoles that much, but the Dreamcast was/still is my baby. I still have mine.

I remember a friend of a friend coming over and was like you got a dreamcast? I'll be back 20min later I had a disc with a library of my favorite games all on one disc.

There is a Dreamcast 2 it's called XBOX. Look at the controller, the four controller slot,the upgrades that the Dreamcast we're missing like DVD player. And the innovation like the internal storage. Sega could've used the pants off of Microsoft for the controller alone. The reason why the Xbox just came out of nowhere was because it was supposed to be the Dreamcast 2. It's common sense.

I love how you have music from Capcom Vs SNK 2 in the background. I notice in the past videos you showed your street fighter figurines from Fan Home. Awesome shit right there.

I always looked at those rumors and memes teasing a Dreamcast 2 the same way I look at all those "flat earth society" and "5G gives you Covid" posts 🤦‍♂️ Marketing and advertising from massive corporations tend to have a certain level of polish and consistency to it (i.e. branding), in case you're ever in doubt whether something's legitimate or not. If anything looks a little off, chances are it is. These companies spend a lot of time, energy, and money on these sort of things to instill confidence in consumers' minds and keep counterfeiters at bay.

When I was in college someone saw me playing Sonic on 3DS and they were like "Oh, you like Sega? Did you hear about the Dreamcast 2? These guys are designing their own console and they're just gonna give it to sega, it's gonna be so great, it's gonna happen man" and all I could think was "ooooooooh that is *really* not how any of this works", but I just said "oh sounds neat!". I had no idea the lore on this went so deep.

I think I would cry if Sega made a new console A dream that will never happen 😔

The real joke is when it miraculously comes out. To with this I would point a finger and say belief can be a very strong thing. Even if something doesn't exist, if enough believe it can, it will.

Capcom Vs Snk2 music in the background FTW! Epic Lady Decade epic! Much Kudos to you

I had a game gear as a kid that I got at a yard sale for $15 USD and it got stolen from my backpack during a vacation. One of my classmates had the DC, and had so much fun especially with sonic. I bought an orange box Japanese console and trying to build my collection even if it’s along the high seas. Suggestions gorgeous lady decade?

Hubiera sido una gran consola , gracias por la historia , tal vez si supiéramos cómo sería él hardware de esa consola para volar la imaginación . Saludos desde colombia 🇨🇴

I won’t forget the time that guy randomly walked into a G4 live coverage of E3 and asked Olivia Munn about the Dreamcast 2.

As a fan of the colour combination black and red, I do approve of the design

Another excellent video with good info. I know I comment a lot on your looking good, but I really do appreciate all the work you put into your videos. Thank you!

nice informative content. can we have a look around your games collection? it looks ace!

I still need to fix up my Dreamcast situation so my son can play on it with me. Got a CRT for it and everything. I'd be nuts to not do so considering the light gun games on the platform. I'm just sad my original was rotted out cause of my mother storing it improperly.

Lots of Dreamcast games still hold up. Refurbing one at the moment. They're actually pretty well designed for such a small unit. There's a lot crammed in there.

i would love a Sega Dreamcast 2 i just got another Dreamcast for Christmas and i recently have been playing it again I love those games so much

It's still thinking, really speaks volumes about the Sega fanbase puts that much support behind a rumor. I get it, the Dreamcast was a major part of my formative gaming years. I still remember my launch console with Sonic Adventure and Ready 2 Rumble Boxing. Another great video keep it up!

I think that the name dream cast 2 was coined to relate the new project to the old one, also because the life of the original was too short and I think that everyone wants to see what could sega offer on the new gen.

We already had the Dreamcast 2, it was called Xbox 360.

I loved the Dreamcast but this 1 would’ve failed

I worked in electronics at the end of the Millennium. I sold a lot of Dreamcasts. I personally had a PS, but that was because Tomb Raider was still Sony exclusive.

Anything Dreamcast, I AM IN! Does anybody remember 2K?

Sega was never going to release a Dreamcast 2 if they were going to make another console that’s Sony who goes by numbers with their Playstation no one else

I remember reading post on RU-vid back then about. People were really hoping it was true, so much so that they quite frankly came off as very sad and pathetic. Some of those Sega fanboys just need to stop living in the past and move on. There was never any good evidence anywhere that Sega themselves were ever thinking about making a comeback, and it wouldn't be the same Sega they once knew anyway. It would seem like a completely different company, because it damn near is a different company. I'm not saying that it doesn't hugely suck that Sega no longer makes consoles, but it's been 20 years! People should just be thankful that Sega is still around and still making games.

i remember even before this happened! watching fan made DREAMCAST 2 promo videos! and i was kinda hoping with fingers crossed that a DREAMCAST 2 Console did happen!! but knew the chances were extremely slim to none!!...

I'm so convinced that Sega will never release a new console that I'm putting my money where my fingers are and stating, and had stated, that not only will I buy it if they do, I'll get all the games they make for it and do let's plays of them. And no, I didn't say anything about 100%, all unlockables and secrets and all that like back in the day.

I love the Ali G references it flew by everybody's head lmao

4:09 I remember the hype over that, but it was only a re branded Wii 🙂 I was massive DC fan, but tbh, no company is ever gonna get a foothold in the industry for years. Unless something catastrophic happens to 1 of the big 3, or our game culture changes, I can't see another new or old contender emerging for decades. Good vid 👌

I always been a Nintendo kid, but the Dreamcast changed that. Now I’m a Nintendo adult. Waiting in the shadows for when Dreamcast rises once again! Also I wouldn’t mind if the Dreamcast 2 looked exactly like the first one.

Sega is literally sleeping to damn much. If the Dreamcast ever came back, It would trash Nintendo, no questions asked.

It still blows my mind that the 90s started with the NES and ended with the Deamcast

If Microsoft bought sega it would be insane

I love these gaming history documentary videos. I hope you do some more on game series.

Still got my console boxed.Smells like new.Still play Zombie Revenge,Soul Legend,Sonic 2,Soul Blade and last but not least Gigawing on this legendary console.Grts from Belgium