*Edit (Double post - bad wireless connection) :)

Hmm, I believe that when Sony bought out the Dreamcast they signed a deal with SEGA that SEGA would not compete with them for so many years on the console market, on the handheld side it's free game, there was talk of a redesigned gamegear coming out years back in the GBA days, but I don't know anything about how long that contract extended to, so one day maybe a new console, or one day a new handheld, which would be where my money would go if they were going to make a new system.

They're just a software company now. They'd be as likely to release a console as Ubisoft, Capcom or THQ.

We had some fun times with Sega consoles, but it's time to let that go.

No, and EA won't either. If EA released hardware, all the developers who they don't own but publish through them would leave and find publishers elsewhere. They wouldn't stick around to be forced to develop solely on an EA console (with out a buy out)

This would mean a huge loss in publishing revinue they would have to make up with license fees and hardware sales.

Not to mention they would more than likely lose their exclusivity deals with profession sport leagues, as these want the widest audience available.

EA won't

They would call it Sega Neo Genesis, Reminding players of the fun they had in the early 90's playing their games.

...It won't happen though...

no

I think sega would have a better shot at making another a handheld then a home console. Of course they wouldn't compete with the ds or whatever handheld nintendo would have out at the time, but I think they could do what the psp has done and make a small profit which I dont know if they could make a profit going with a console.
And obviously they would have to make it better then the Game Gear!!!!

 I doubt it. Sega has only had one big hit in the past year (M&S).

I'm no expert on Sega, but I would suspect that it is not nearly as influential within the gaming industry as it was during the glory days of the Genesis (Megadrive as it was known here in NZ).

One thing Sega had going for it back then was its dominant position in the arcade market, which it often exploited with some success to promote its consoles. The death of arcade gaming must have really hurt Sega IMO. Unlike companies such as Namco and Capcom, which rather successfully made the transition to a home console dominated industry, Sega was obviously handicapped back by the fact that it would only release its software on Sega consoles, which as we all know, sold rather poorly. This left Sega with a significantly smaller audience for its products, and the rest, they say, is history.

I believe that the industry has changed significantly since the Sega glory days and IMO it is not suitable anymore as a major player in hardware. I think that it needs to improve its software quality, because in that respect it is well behind the high standards of the 80's and 90's.