They pulled through, somehow. Sega tried pulling the plugs on light guns with the Dreamcast in the US market as a fear of backlash as a result of the Columbine shootings. They never made their own light guns for the systems but published several games! Third parties stepped up and there are a small handful of them available.
This wasn't the only instance of them avoiding unwanted negative media attention. Sega cancelled a fully developed game called "Propeller Arena" because with airial combat in urban settings, people can crash into buildings, and with the
September 11, 2001 tragedy... well, you get the idea. Fortunately, a final development copy was given to the dev team, and one managed to stream out to eBay, where the highest bidder dumped and shared the disc image, and honestly, its one of the best Dreamcast games.