^ I think it would be an immediate success out of the gate, actually. Just the novelty of Sega selling consoles again would move units. The problem after that would be Sega struggling to keep selling them after that novelty wore off.
But I think a lot of people are misinterpreting this, just from that comment. From what I can see, they don't want an all-new console (I'd love that if it was, though). They want a modernized version of the Dreamcast. One that can have a hard-drive to install games to, one that can play DVDs & Blu-Rays, and one that can play in 720/1080 HD.
Another misconception I'm seeing: Sega doesn't make hardware. They make all kinds of arcade hardware. Hardware isn't one of their hurdles.
One thing that's not a misconception, though, is their game quality. I really can't argue that. They aren't the Sega of old. This would be something supported by the collector's/retro market, and by indie-developers if it's capable of new games. I'm sure. But being part of that retro market, I'd still be happy with that.