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johnathonmerritt said:
I have no proof and I haven't read it anywhere, but I'm pretty sure Sega took a bow to Microsoft. The controller was a pre-360 design, the system ran Window CE, and the fact is that Sega could still be making games for the console today. It should rightfully be at the end of it's life cycle, but it's quite fishy that they announced it's death the same time the X-Box was released.

They announced it's death January 2001. Xbox wouldn't be released until November of that year. However, I do agree with the rest of your post. It's weird they killed it off the same year Xbox launched.