The Japanese already still laugh and get confused as to why the original FAT XBOX console was and still is a thing, so I would not be shocked as to the amount of laughing that would inevitably take place.
That is, if it did happen.
The original Xbox made a lot of sense - it was essentially supposed to be a way for console gamers to get something approaching a PC gaming experience in their living rooms. It had a Not!Pentium III, DirectX support, a hard drive, and even online support out of the box. In a lot of ways, it was really the first 'modern' console. And so it actually did alright in the US and Europe. People forget that even entry-level PCs capable of playing games were still north of $1500 in the early 2000s (and those didn't even play games that well), and so the Xbox was a compelling product that let you play shit like Doom 3 and Halo for a quarter of the price of an entry-level PC.
Now, the Japanese probably still found it baffling, but that's more due to them being entirely ignorant of PC gaming rather than any kind of flaw with the Xbox itself.
Disagree. The steaming service bubble is about to pop as it is. The subscription MMORPG market bubble popped. If any console video game subscription model up. It might be a game pass or PS Plus.
The subscription MMORPG market definitely didn't pop. The two largest big-name MMOs currently both require subs and pretty much all of the others have some kind of monthly pass you can buy.
I think the situation was that Nintendo had no debt or outstanding loans and was sitting on substantial amounts of cash. The N64 and then Gamecube not doing NES/SNES/Sony numbers was a blow they could take unlike Sega with the Dreamcast. According to available numbers the DC sold half as much as the GC even though the DC had a total lifespan of 2½ years(~18 months in the west). It made Sega pull the plug and drove them out of the hardware business but similar numbers over a similar period of time didn't faze Nintendo.
I would say there's two factors that killed the Dreamcast:
1) The Saturn's failure in Europe and North America. Sega was a distant number 3 in the console market in Japan during the 16-bit era and their primary revenue source was the Megadrive/Genesis in Europe and the US. Losing that position with the release of the Saturn eroded most of the growth they had enjoyed since 1989.
2) The Dreamcast's ambitious hardware design. Nintendo went with a PowerPC chip and Radeon chipset for the Gamecube which meant that they could piggy-back off IBM and ATI's economies of scale for cost reduction. The Dreamcast used a highly proprietary Hitachi processor during the period when Hitachi was trying to get out of the CPU market entirely, so cutting the DC price was never going to be sustainable.
Had Sega been able to produce the Dreamcast sustainably at ~$99, they could have probably stayed in the console market far longer. But they couldn't and so the only option was getting out and restructuring.