Dreamcast did ok, but PS2 is what really torpedoed them.
They sort of launched it in an odd time. The graphics were better than N64, but N64 had a pretty strong market penetration at that point and the price of games cartridges had fallen significantly since the console launched putting them closer to to the 40-50 dollar range. Dreamcast also had a game issue - they had a lot of really quirky games that while unique never sold very well (like Sea Man and Space Station "insert number here I forget, it was a dance game"), and not enough hits like RE: Code Veronica. They never really got a super strong library early on and then PS2 launched, which eventually ate everyone's breakfast because not only did it (eventually) get a great game library, but it also doubled as a DVD player and at the time it was pretty much one of the cheapest home DVD players available and the DVD movie craze was really hitting its stride at that point.