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SEGA have struggled to make an impact on the HD market thus far, the games they've put out just haven't been good enough / had that widespread appeal that Capcom created with Lost Planet / Dead Rising or the other Japanese publishers already had - Final Fantasy, Metal Gear Solid, Resident Evil etc.

They've seen their weakness and I think have a good strategy to try get a stronger base on those consoles, just they've not had the luck I guess. Bayonetta couldn't entice western gamers albeit it holds up decent figures - it's definitely the right direction for them to go in though. With AvP, Alpha Protocol, Vanquish etc set for this year I think SEGA are headed in the right direction in terms of support for that console.

They obviously need to keep up the Wii support too, albeit outside of Sonic they've not had anything sell incredibly well, and that's been hit or miss at times. I'm not sure what else SEGA can really do on the Wii though that seems logical, except maybe a New Super Mario bros Sonic type 2d platformer - would seem pretty derivative though and would kind of conflict with Sonic 4.

But yeah, seems like SEGA have reacted to the market change and are starting to turn a poor few years around, while Namco just.... keep making the same mistakes.