Sega's decision to implement a GD-ROM (though publicly advertised as a CD-ROM) for storage medium did save costs but it did not compare well against the PS2's much-touted DVD capabilities. Sega was either unable or unwilling to spend the advertising money necessary to compete with Sony, who themselves took massive losses on the PlayStation 2 to gain market share. With the announcements of the Xbox and GameCube in late 2000, Sega's console was considered by some to be outdated only two years after its release. The previous losses from the Saturn, 32X, and Sega/Mega-CD, stagnation of sales due to the PlayStation 2, and impending competition from Microsoft and Nintendo caused Sega's revenue to shrink and announce their intention on killing the system in early 2001, dropping the system entirely and leaving the console market in early 2004 in Japan and much earlier in other countries. Sega also announced it would shut down SegaNet, an online gaming community that supported online-capable Dreamcast titles. Due to user outcry over the decision, Sega delayed the service's closure by an additional 6 months. Since the Dreamcast's discontinuation, Sega transitioned to software developing making games as a third-party company.
