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SEGA's problem is all the games they put out for the HD consoles are garbage (or at least not as good as what most others are putting out), and so they all struggle to sell. Combine that with the fact that the Sonic franchise no longer sells to anyone but Wii owners (NOt sure why...) and SEGA are struggling.

Then you get the whole recession / strong Yen making it worse.

SEGA should be putting more into the Wii, they're not capable of making a PS360 game which can sell big numbers. Until they can do that they shouldn't bother with it.

I don't remember the last time I bought a SEGA game ....