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disolitude said:
 

Except come 2001 when Sega pulled the plug they had absolutely no money to launch another console. They don't have a big daddy like Microsoft or Sony to milk for cash while they grown their business.

Otherwise I agree with the final nail was going software only...but its not like they had a choice.

Wish they were bought out by a gaming company like nintendo or even Microsoft. They have too many cool IPs we will never see. Also, they most likely own the rights to a good DPAD as none of the companies making controllers know how to make DPADs anymore.

It is true that Sega were in debt, but they could have easily borrowed money to launch the Dreamcat 2. (People also forget that Japan had ZIRP at that time) Sega was killed by bad internal decisions right to the end, but for some weird reason people think Sony or Microsoft killed them.