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Doctor_MG said:

"Sega was pushing tech to enable its arcade games into the living room and would have continued to do so"

Again, the only reason they started to was because they saw that the gaming market was lucrative. In fact, the only reason they developed the SG-1000 was because they heard Nintendo was creating a gaming only console (they were just working on a PC at the time), and the Master System is a direct successor to the SG-1000. Also, if Nintendo had never gone into the North American market in the first place Sega likely wouldn't have attempted to either, at least not for a long while. Most analysts were saying that Nintendo's move into North America was an extremely bad move.

Sega was never going to be the replacement for Nintendo. 

"the only reason they started to was because they saw that the gaming market was lucrative."

And Nintendo had a different reason`?

"In fact, the only reason they developed the SG-1000 was because they heard Nintendo was creating a gaming only console"

Citation needed.

"Also, if Nintendo had never gone into the North American market in the first place Sega likely wouldn't have attempted to either, at least not for a long while."

Pure speculation.

"Sega was never going to be the replacement for Nintendo."

Prove it.