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1. If they were to enter the market they need a better name then ringedge/ringwide. Soulds almost as bad as Wii (athough the name wii worked).

2. Sega doesn't have enough first party games. Seriously the top 2 games they've made this gen (thanks to metacritic) are Virtua Fighter 5 and Valkyrie Chronicles. Then the #3 game is Sega Rally Revo which got a 77 metascore. Sonic is almost completely washed up.

3. Unless its really cheap $199 or less at launch I don't see it doing anything miraculous sales-wise. The Wii had 2 things going for it - Price, and the brand name Nintendo. Nobody cares about the brand Sega anymore except hardcore fans, so they need a low price point.