Sega made disastrous business decisions with their hardware and multiple add-ons. The "Game-Industry" didn't sink Sega while twirling their collective mustaches, Sega put the holes in their own boat. Remember the surprise launch of the Saturn? The DOA CD add-on (was it the 32x, or the other cd add-on, I can't remember)?
Nintendo has also made some bad desicions over the years, like their historically poor relationships with 3rd parties, cartridges instead of cds, mini-discs instead of dvds, the lack of a hard-drive, their awful online service, sweat instead of blood (and numerous similiar instances). In fact, if it weren't for the quality of their software, even all of the great moves that they've made (Wii, DS, Wavebird) wouldn't have saved them from Sega's fate.
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