Sega is in trouble, but I don't think they are going anywhere - at least for the near to mid future.
For those saying that Nintendo should buy them, I agree. However, Sega asked Nintendo to buy them out before, and Nintendo refused. I think Nintendo and whats left of Sega could do wonders with the stable of IPs that Sega has. Sadly, I don't see it happening.
For those saying that Sony has done more than Sega, well, you are obviously too young to remember a lot of the legendary Sega IPs. Plus, Sega was the first company to duke it out with Nintendo and hold their ground. For anyone who remembers, Yu Suzuki and Yuji Naka were legendary designers.
For the record, MS screwed over Sega as much if not more than Sony did (WinCE on the DC).
For the good of gamers, Nintendo needs to buy Sega, but I doubt they will because they probably don't see Sega's IPs as being compatible. It's a shame though.
barring that...
For the good of themselves, MS needs to buy Sega, and slap their name on their hardware (I'm thinking Japan especially). If MS were smart, they would have acquired Sega last time and released the "Sega X-Box". It would have gone a lot farther in Japan.
