me too i am replaying the first one for like the 5th time.

 not so amazing considering the 120M userbase. 

Virtua Fighter and Virtua Tennis are cash cows for them, not to mention the surprise hit of Sonic and the Secret Rings, so money is not the issue here. My question is: what would be the point?

Sega needs to find some talent that can make a good Sonic game (besides Bioware).

Then I'll care.

What would make anyone say Sega's doing bad? They've just been going up since 2004, quality and for sales.

Sonic and the Secret Rings wasn't a suprise hit. Its a Sonic game for christ sake. If anything, it sold under expectations. Now I can see where you're coming from if you're refering to quality, a trait that Sonic's console appearences have been lacking since the MegaDrive.

Virtua Fighter and Virtua Tennis are not cash cows. They sell decently enough, but they are hardly exploited. How many Virtua Tennis games have been made in the last decade? Four? And two of them were DC games. Now Virtua Fighter was a cash cow back in the Saturn days, but there was a nice 4 year gap bewteen VF4 Evolution and VF5.

I think Sega'll eventually go back to hardware eventually, when it becomes important enough to do so again, but not next year. Let's think that one through.

The point would be to add to Sega's already large Euro division. So far, Sports Interactive (the highly successful Football Manager games) and The Creative Assembly (terrefic Total War games) have worked out for them.

Nintendo wont merge with Sega as Sega already merged with Sammy, thusly it is Sega-Sammy.

Guess I was under the wrong impression then. So any idea who they might be trying to buy?

No clue. I would say Sumo, but they were recently picked up by someone else.