Sega did their best to try and creat a succesful system, but their was one very major technical element working against the DC, no DVD. The DC can in many instances out perform the ps2 because of its mass amounts of vram, but because of sega using their specialy encoded GD's segas machine can't do many things graficaly that thew ps2 can. Besides the storage problem GD's presented, they were also extreamly easy to make copies of. Their are probably more copies of DC games out their then actual ones, this drove sega into a financhial snare which they were hoping the DC would cure for them.
Over all the DC is a wonderful machine with tons of great games, but in the end, its small storage size and falty encription code was all it took to become the underdog in the next gen system wars.