My dream for Dreamcast was that one of those JRPG makers would have made a solid MMO, and that there would have been dual: That Lameo Modem along side a LAN connection. Everyone knew online multiplayer was the future. If Dreamcast would have been the hardware for it, things could have been different. The only hard part is that broadband was just beginning to take off in rural areas over the next 5 years. So a lan connection might have been too ahead of its time... Not sure.
If I was the head of Sega, I'd keep making software, but I'd aim for mobile targets. Make Sega games for Android Tablet/Phone with a gamepad option. Start by porting the classics, or even just licensing an emulator for like 5% of sales revenue. The cash would pour in and it wouldn't take any coding time at all, just licensing deals. You might pressure Apple into a joystick driver on ipad/iphone. You could port games to run off keyboard for ipad/iphone. And if Apple won't get off their butts to make a joystick driver, you could make a joystick that operates like a keyboard. Sega would be in the drivers seat, and set up a precedence for other companies to make their old video games run on mobile or lose revenue.