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Or having the experience to not want to deal with that OS

Yeah, what an odd decision. I did a lot of work on CE back in the day, and I'm not a pro game dev by any means, but I don't know what advantage it would offer over any SDK that abstracted the hardware a little

CE was a very lightweight OS that was mostly nice for making it easier to port drivers and apps from one embedded system to another

Maybe Sega had some vague plans to turn the Dreamcast into a multipurpose family computer?

Considering it had a modem, could have an Ethernet module added, had official Web Browser Discs, had official Keyboard and Mouse accessories (I have all of these except the darn Ethernet module)… I think they were. Or at least a “web TV” -esque plan.

It had a ton of potential. The hardware is still fast enough to do basic browsing etc without issue if it had an updated browser.

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