"Before Mr. Okawa passed away, he visited Gates several times, to see if it would be possible to add Dreamcast compatibility into the Xbox."The article goes on to reveal that Sega had hoped that through this compatibility, Dreamcast fans could migrate to the much more powerful XBOX. Negotiations fell apart when Microsoft decided that they didn't want an internet connection for the Dreamcast titles. Check out the full article for more informative tidbits.
My take: I wish Sega had made the move. Sure a handful of games would lack online features, but a bulk of the library would have been unaffected. Besides, maybe Sega and Microsoft could have worked out a deal to create ports of online capable Sega games that would bring in some profit for Microsoft. Another possibility could have been that Microsoft received a cut from the monthy subscription fee that games like Phantasy Star Online charged.
Of course, one would also have to question if the Dreamcast on the XBOX could have lead to Microsoft having exclusivity on Sega titles and possibly buying out Sega at one point in the future. Who knows!
What's your take?