Gamers like to sensationalize thurn early launch had very little to do with Sega's failure overall.
Sega made mistakes but ultimately failed because they had financial issues, plain and simple. They couldn't burn monel like Sony to float consoles below cost, especially once their arcade division started tanking towards the end of arcade era. People don't realize that Sony lost more money in 2000 floating the PS2 at 299, than Sega did that year...
Otherwise mistakes they made which could have made them fight the good fight for longer:
1. Make Saturn easier to program for - aka. tell Nvidia to fuck off with their quad polygons and design Saturn to run triangles, and get more software support
2. Have better engineers to design a powerful but cost effective console instead of the Saturn
3. Not even bother with 32X and give the software support it got to Sega CD and Genesis
4. Support Sega Cd and Genesis beyond 1996...free money
5. Foresee the death of Arcades and invest in online sooner
6. Dreamcast piracy fiasco
etc
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