if you wanna talk software problems:
lack of EA support = FIFA, Madden, etc.
lack of decent RPG to battle Final Fantasy. FF7 was massive and they needed to try and counter the fact that the rest of the series would be PS2 only. Skies of Arcadia and Grandia were very cool games but were released in the last days of the DC so were too little, too late.
the best game on DC... Samba de Amigo. that game kicked the ass of Dance Stage etc. but at £100 was WAY OVERPRICED (yeah i got one anyway).
it was just another bad commercial decision.
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