Ok I am only going to make a couple rebuttals cuz there’s lots of uninformed people on here. Sega is MORE Profitable since going 3rd party then they were in their glory days.
SECOND Sega has a SH!& load of great games that a lot of people on here don’t know about simply cuz they aren’t on GC. Spartan, Virtua Fighter 5, House of the Dead 3, Sega GT online, Panzer Dragoon Orta, Condemned, Sonic Adventure, Super Monkey Ball, Sonic Riders, Sonic Rush, etc. Sega has just as many games going now as they ever have and they STILL have a ton of great games that are only overlooked because they aren’t on GC.
Sega going 3rd party was a good decision. Sega also has their hands in many hardware areas right now also, they have the Plug N Play Genesis and there’s a DVD player coming out that has Master System games built in. Sega is making a major come back and could easily release a brand new system if they chose, but they are too deeply involved in Ps3 and Rev and 360 stuff to do that right now.
Nintendo is far more profitable as a hardware maker than Sony so there is no need for them to abandon their hardware. Also Nintendo has Pokemon and GBA/DS not to mention all their million selling games to eat any losses they may or may not incur due to GC sales.