Right, how to make the Saturn succeed...
1) Sega launches the Saturn in it's original form, with a single Hitachi SH1 processor, as it's CPU, instead of the 2xSH1's it's eventually released with...
(Basically, Sega doesn't panic on seeing the Playstation's specs, & don't effectively redesign it in order to counter the Playstation, thus releasing it earlier, & making it easier to program/delevop games for).
2) Fit it with a DVD Drive, as some of the Japanese licencees did to their Saturns made under licence (JVC made a enhanced Saturn with a DVD, under the name of Wonderdrive, while Hitachi made a Saturn variant for luxury vehicles in Japan, featuring a DVD drive, a 8inch LCD display, & a integrated GPS system).
As for X-Box, considering the Dreamcast used version 1.5 Windows CE Professional, as it's operating system, could Sega have launched the Dreamcast, under the Microsoft label in the U.S, in a similar way that Apple intended to do with the abandoned "Pippin" games console, which was to be made for them by Bandai...?