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On PS3, sure, but that game has been making profits via the arcade for a long time ago.

Sega's in a rather cozy position this generation compared to a lot of other third parties. They didn't put their eggs in one basket. They spread themselves out across the consoles, putting a solid line up on each of them, and have been getting some solid returns. Their doing handhelds, PCs, made loads of awesome acquisitions and smart publishing decisions, they are making the best game for Nintendo's big new peripheral this holiday (Ghost Squad and Wii Zapper), they have a guaranteed huge money maker in the form of Mario and Sonic, and if all else fails in the home market they still have a thriving arcade business in Japan.

I'd say Sega's probably in one of the best positions of any publisher this generation, as they have a diverse line up of products on a diverse amount of hardware, they are kings of the arcade scene, and they have at least two garunteed multi million sellers in the form of Mario and Sonic at the Olympics on Wii and DS (which got a very positive showing at GC, I might). If they could just make a good Sonic game and not screw up NiGHTS (coming in 2008) they should be good.

Edit: Ouch, can't believe how much I just rambled. I really shouldn't surf the web when I'm drowsy. But hey, if anyone feels this warrents further discussion, we could make a new topic.