What if Sega never left the video game console market?

In 2001, Japanese video game publisher Sega announced that it would leave the video game console market by discontinuing the Dreamcast due to its low sales and heavy competition from Sony's PlayStation 2 that led to significant financial losses. But what if the company went for a different path and reviewed its role in the market? Here's a potential scenario.

List of changes

 * As an attempt to boost its sales, Sega launched a revised version of the Dreamcast in 2002 that allowed enhanced graphics and internet connection adapted for broadband as well as an improved controller and extra storage, quickly becoming a hit within the gaming community.
 * The Dreamcast would have been more successful, prompting Sega to return the handheld market as well to create a competitor to Nintendo's Game Boy and Sony's PlayStation Portable.
 * During the merger with Sammy, Sega would have bought Arc System Works, gaining the rights to their franchises.
 * As a consequence, some third-party Arc System Works games wouldn't exist.
 * Sega would still allow the release of its games to competing platforms, although key games will be exclusive to its consoles.
 * The company tries to balance out between its core franchises like Sonic and Puyo Puyo and newer ones like Like a Dragon and Super Monkey Ball, while also giving more focus to forgotten ones like Golden Axe.
 * In order to expand its game library and taking notes of Capcom's success with its crossover fighters, Sega signed a deal with Warner Bros. that allowed to create a crossover fighting game between DC and Sega.
 * In exchange, the deal also gave Warner Bros. the rights to produce any content based on Sega franchises for film and television, although its comics would still being published by Archie Comics and later by IDW Publishing.
 * The Sonic series would suffer a few changes, such as changes to the main games, spin-offs, tweaked shows and movies, etc.
 * One notable example is the Olympic Games tie-ins, as instead of being a crossover with Mario, is a cross-company crossover.
 * Currently, the video game console market is still led by Sony, followed by Sega, Microsoft and Nintendo.

Home

 * /Sega Dreamcast/ (1998-2006)
 * /Sega Nova/ (2006-2015)
 * /Sega Neo/ (2014-present)
 * /Neo VR/ (2017-present)
 * /Sega Nebula/ (2020-present)
 * /Nebula VR/ (2022-present)

Handheld

 * /Sega Comet/ (2004-2013)
 * /Sega Meteor/ (2012-2018)
 * /Sega Cosmic/ (2018-present)

Franchises
Note: * = original idea.
 * /Sonic the Hedgehog/ (1991-present)
 * /Sonic Boom/ (2014-2018)
 * /NiGHTS Into Dreams/ (1996-present)
 * /Puyo Puyo/ (1991-present)
 * /Alex Kidd/ (1986-1990, 2003-present)
 * /Super Monkey Ball/ (2001-present)
 * /Space Channel 5/ (1999-present)
 * /Samba de Amigo/ (1999-present)
 * /Like a Dragon/ (2005-present)
 * /Shenmue/ (1999-present)
 * /Streets of Rage/
 * /Jet Set Radio/
 * /Crazy Taxi/ (1999-present)
 * /House of the Dead/
 * /Golden Axe/
 * /Virtua Fighter/
 * /Shinobi/
 * /Fighting Vipers/ (1995-present)
 * /Altered Beast/
 * /Burning Ranger/ (1998-present)
 * Element Drive* (2004-present)
 * Mousepocalypse* (2006-present)
 * Into the Crypt* (2012-present)
 * /The Realm of Nightmares/* (2014-present)
 * 24-Hour Action Hero* (2018-present)
 * /Savage World/* (2020-present)

Atlus

 * /Megami Tensei/ (1988-present)
 * /Persona/ (1996-present)
 * /Catherine/
 * /Snowboard Kids/

Arc System Works

 * /Guilty Gear/ (1998-present)
 * /BlazBlue/ (2009-present)
 * /The Last Witch Hunter/* (2012-present)
 * /Double Dragon/
 * /Kunio-Kun/
 * /River City Girls/

Third-party

 * Vocaloid
 * /DC vs. Sega/* (2007-present)
 * Football Manager (2004-present)
 * The Olympic Games (2008-present)

Crossover

 * Sega All-Stars
 * /Sega All-Stars Rumble/* (2003-present)
 * /Sega All-Stars Party Frenzy/* (2004-present)
 * /Sega All-Stars Racing/ (2010-present)
 * /Sega All-Stars at the Olympic Games/ (2008-present)

Animated

 * Sonic the Hedgehog (Warner Bros. Pictures/Warner Animation Group, 2019)
 * /Sonic the Hedgehog 2/ (Warner Bros. Pictures/Warner Animation Group, 2022)

Animated

 * Sonic X (TV Tokyo/FoxBox, 2003-2005)
 * Sonic Boom (Canal J/Gulli/Cartoon Network, 2014-2018)
 * Shenmue: The Animation (Tokyo MX/Crunchyroll/Adult Swim, 2022-present)
 * /Sonic Champions/ (HBO Max/Cartoon Network, 2022-present)

Comic books

 * Sonic the Hedgehog (Archie Comics/IDW Publishing, 1992-present)