Because people have mentioned this, here are some of the reasons why Sega no longer makes consoles.
1. Genesis Add-Ons
In the late 4th generation, Sega made a bunch of expensive and unsucessful peripherals for theiraging Genesis, ala Microsoft with the Kinect. Unlike Microsoft, it didn't work. These pieces of hardware cost Sega a lot of money to make, and they ultimately had little support and a poor reception.
2. $399 US Dollars
The Saturn came out a few months ahead of the PlayStation, sure, but at an extra cost of $100. Think about all the flak the PS3 got back in the day for its price. Now imagine a cheaper system with at least as much support coming a few months later.
3. Lame Launch Lineup
The Saturn launched so early, it barely had any games available, especially in the West. In fact, there were only six games at launch, and none of them were huge ala Super Mario 64.
4. Complicated Hardware
Although more powerful than the PS1 in some ways, the Saturn was far harder to program for. Therefore, a lot of games didn't run as well on it, or were only affordable to make for the PSone.
5. Poor Reltaionship with retailers
Retailers felt betrayed by the Saturn's early launch, since they thus didn't have any to sell. Thus, some retailors refused to stock Sega hardware.
6. No Sonic 4 or 3D game
Sonic pretty much skipped the Saturn. That's like a Nintendo platform without Mario. Think about it.
7. Poor American Management
The guys in charge of Sega's American division made some very stupid decisions. Such as not bringing over any RPGs right before Final Fantasy 7 and Pokemon made the genre huge.
8. Abandoning the Saturn early
Sega announced that it was shifting its attention to the DreamCast in 1997. So far two years, Sega had no console in Western markets.
9. The PS2 was a huge deal
For jus $100 more than the Dreamcast, you could play PS1 games, PS2 games, and DVDs. Like the PS3, it was the cheapest DVD player on the market.
10. No money was left
Sega had been losing money since 1993 on their various failures, and unlike giant tech companies like Sony, had no giant resovior of cash. They had to quit while they weren't too far behind.
Love and tolerate.
