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Leynos said:

SEGA contributed many modern innovations in hardware and development software. Sound and their arcade hardware were top of the line in the 90s always ahead of everyone. They had games in 1996 running on arcades that look better than some PS2 games in Scud Race as one example. They were doing online gaming and cloud gaming in the 90s. DLC. First console with a web camera/Digital Camcorder/Picture Camera and email service. Phone service. Video sharing. SEGA was a huge loss. When Xbox was being developed Microsoft used Dreamcast's as a focus test console. DC is the first console to use Direct X, not Xbox. First console with an MMO. MS never filled the void SEGA left in innovation. XBL while great was still built off what SEGA built in SEGANET. Xbox has made contributions but never to the degree SEGA did.

Tom Kalinske taking the marketing to colleges and older audiences and many of his strategies are what Sony used with PS1 but they had more resources and got a wider reach. Still, SEGA got the ball rolling. Too long of a list of everything but SEGA's innovations to gaming in the 90s while not as well known as Nintendo's were just as invaluable. I mean shit, they had the Switch idea in 1995. Saturn and Dreamcast solved Analog Stick drift in the 90s by creating Hall Effect sticks which are only now starting to pop up more and more in modern controllers. Xbox Series X Dpad is just an improved version of the Saturn Dpad concept. Xbox controller in general owes itself to SEGA. Virtua Fighter is the first 3D fighting game.  Tekken became the game it did because of VF.

Saying not much was lost is either pure ignorance or feigning ignorance.

I feel like all that kind of stuff didn't really make an impact. So they tried to do online first, big deal. It was basically nothing and had no impact on what was going on at the time. Whether they did that or not Microsoft was still going to implement Xbox live into their new console. Their sound was trash compared to the snes, that's a fact. I'm sorry if you're a big scud race fan or something, but that game basically had no impact either. Sending emails, again had no impact on anything. Also had a web cam that couldn't be used in any meaningful way.

It's no secret that Microsoft and Sega had a good relationship and Sega played a part in the development of Xbox, but even then, that proves the point that nothing was lost in their exit. In fact, anything that they would have contributed was able to be better executed because of their exit since their ideas were being realized through Xbox. So really all those points you're making relating to Xbox and Sega just prove the point that nothing at all was lost by their exit.