Too bad nobody has the balls to create a Neo-Geo like premium system with premium prices in relatively low quantities.But I don't wanna hijack this thread
The Neo Geo could support high hardware and software costs by generating most of its revenue from arcades, which unfortunately isn't an option any more. The Xbox 360 and PS3 also cost a lot to make when they were new but they were subbed by the vendors, and software now costs even more to make than it ever did on the Neo Geo - it's just there are no carts to pay for and lots more sales. The idea of an exotic and super high end system is very appealing, but the likes of the PS2, Xbox, Xbox 360 and PS3 are the best we can probably hope for (and only half of those have been business successes!).
The GC represents a different approach, and one that has done Nintendo very well; carefully selected but somewhat conservative hardware that can launch at mainstream prices while selling at a profit. In all of this PS2 vs GC discussion I think it's easy to miss that Nintendo jumped in with a cheap, cost effective, more balanced, and viable system from day one and that they were never trying to recreate a PS2 or Xbox style monster system.
How much more substantial of a PSU or cooling system would've been necessary for 300 or 400 MHz? We can also wonder the same for the Emotion Engine. It would've been fascinating for Dreamcast developers to be given, like with the PSP, the ability to use the full speed of the main processor at a later point with firmware upgrade.
The very first Japanese DC's used a minuscule heatpipe to keep cool, but that was quickly dropped leaving only a tiny fan. You can overclock just about any DC (except the final versions who's bios' seem to reject it) to ~240 mHz on standard cooling, and there's a youtube of a guy with his running at 270 with a tiny heatpipe fitted (but still less substantial cooling than the GC or PS2). The Sh4 spec sheet says the architecture scales up to 400 mHz, but that probably wouldn't have been realistic for volume production in 1998 even with significantly beefed up cooling and power systems. As it was I think the SH4 was originally planned for a 166 mHz introduction but it appears that Sega pushed for them to reach 200 as they felt they needed that performance.
The PS2, IIRC, was originally planned to have it's Emotion Engine run at 250 mHz but either the cooling got uprated or manufacturing improved sufficiently for them to run at 300. Unlike the Xbox 360 and PS3 which both saw clock drops from original plans, they kept pushing with the PS2. It does seems like we've hit a power ceiling on consoles now.
The Dreamcast came at the start of a period of rapidly escalating power consumption for consoles that (like with the PC) has continued right up until the 200W 360 and PS3. The PS2 generation went something roughly like this:
1998, Dreamcast: ~20W, 3cm fan
2000, PS2: ~40W, 6cm fan
2001, GC: ~30W, 5cm fan
2001, Xbox: ~80W, 8cm fan
Slapping a good chunk of metal on the CPU and having a man-sized fan would have allowed the DC to fun a lot faster, but having a fan in at all seemed daring in 1998. By 2001 the GC's significantly higher power and cooling seemed a little bit weak, especially compared to the thumping great tombstone that was the Xbox.