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Dante9 said:

I think if it had been only Nintendo and Sega, Sega could have recovered and there would have been room for them in the market as one of the big two. But Sony's beast was out of the cage and that was that.

What was out of the cage the PS1 first generation consoles overheating or the PS2 laser disc failures?  PS2 had so many failures that the 360 rrod was almost a comprise.