Here in holland the promotion of the dreamcasts was horrible, at the launch day only game stores sold the dreamcast in limited numbers. Dreamcast games were almost from the start only available in special game stores, no toy store of shops like dixons ever sold dreamcast it was born dead here and Atolsoft the benelux distibuter did shit about it.
The main problem with third parties was that SEGA hadn't money to spend with them. Namco only released Soul Calibur on DC because SEGA payed very well. Someone once told me he was on E3, and then he asked to someone from Namco if others big titles like Soul Calibur was coming....the answer he got: "If SEGA pays well, why not?". Now you can wonder why the DC just got inexpressives games from Namco after SC... PD
That is the thing. I don't know exactly how licenses work but if Sega went to the five developers I listed and said "We want to make up for our past mistakes and get back on track so in exchange for the exclusive rights to your top titles for the Dreamcast and our next system we will forego all license fees and allow you to keep all the profits for the games you make on the Dreamcast." Sega would have gained everything. They would have locked up the best titles for the Dreamcast and their next system which would have pretty much have guaranteed them having the number one for the next decade. Being number one they would have sold tons more of their own titles. They still would have the profits from licensing all the other developers who would have jumped to them. What would they have lost? Profits from five developers whom with the exception of Capcom they never really got anyways. This is basically what Sony did with the Playstation and it made the system number one. Though it wasn't free Sony's license was so much better than Nintendo's draconian one that developers couldn't sign fast enough.