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After showing this to another person they said

"The downfall of any major company doesn't happen after a single failed product (dreamcast)
For sega to have exited the console race will have taken many more years of failure then just the 4 or so years the DC was on the market.
In light of that, nintendo weakened the pillars and then the ps2 delivered the killing blow"

It also doesn't help that sega built those pillars out of chocolate. So yeah really it was on sega