The DC launched more than a year before PS2. Consider what would have happened if it launched the same day as PS2:
-in addition to its already stellar launch line up, they could've had Crazy Taxi, Jet Grind Radio, NFL 2K1, Quake 3, PSO, Daytona, and Shenmue. Contrast to the big launch releases for PS2...uhh...Ridge Racer 5, Tekken Tag, Gungriffon Blaze anyone?
-they could've had their online game together at launch, as opposed to PS2.
-they could've opened at a lower price point, sayyy half the price of PS2 at $150. Or at 199 w/ free Seganet.
-instead of allowing the Saturn to go down in flames to make way for the DC, they could've brought over some of their outstanding Japanese releases, and produced bigger runs of Panzer Dragoon Saga, House of the Dead, Burning Rangers, and Shining Force 3.