Nah, I believe the Playstation destroyed the arcade, because it overran the home console market with games that were already in the arcade and multitudes that werent and eventually it came full circle into the home. It also threatened the PC market when it expanded the marketshare of the console realm. PC devs started to jump ship to consoles after the first Playstation came, and so did Microsoft cause Sony kind of shocked the world as to what a console could do, being multimedia/gaming system. Sega's only sellers for the consoles were their hottest games in the arcade, thus cannibalizing every thing they had to offer at home. Sony even stated themselves as a threat to the PC market, which prompted Microsoft join. I found that out after watching the history of the Xbox. 

You're right, the arcade games that survived were the ones you couldn't replicate at home. Some games like Tekken became a household name after the Playstation came out though and shifted popularity from arcade to console. Nintendo themselves never put a dent in Arcade gaming, because the superior versions of the games were always in the arcade. 

My turn to offer advice: it is considered both rude and insincere to edit a post without acknowledging so.

I must again make myself clear: I never said Sega was or is unable to fund sequels, as if it doesn't have the ability if it so chooses. It could announce a new Virtual On, Shenmue, Jet Set Radio and Skies of Arcadia tomorrow, but as much as I would love for any one of those, I'm not holding my breath because those games aren't nearly as popular or in demand as the Internet Community makes some of them out to be, and all would be commercial failures. This was my point. It has always been. Not the hardware. Not saying it is the reason for Sega's demise (though if Sega made a Shenmue with a modern budget and development time akin to the original more than a decade ago, it WOULD be it's demise). Not trying to say anything beyond that.

You sound like you're ready to attempt to level with me now, so maybe now we can find mutual ground. If not, then we can at least agree that it's time to put this silly argument to an end.

So what I learned from this thread is that... M$ is good at making money, and SEGA wasn't.

Yup, sounds about right.

Oh... and M$ never released expensive add-ons for its existing consoles as stop-gaps between generations, nor did it decide it was a good idea to release a console months ahead of its officially announced release date with no games.

You could argue that Kinect was an in between generation add on. In 2009 sales of 360 slightly declined from 2008, if not for Kinect its very likely it would have continued to do so in 2010 and 2011 instead of those being its peak years.

True.

Uh.....sorry, but bullshit. Nintendo's licensing policies didn't "drive third parties to Sega". As in ever, at any time during the two company's history. Why do you think NES had so many games, while Master System didn't get a LOT of those games? And even when they quit that during the SNES days, most third parties CHOSE to remain developing for SNES, not Genesis.

And even in the following generation, most third parties that left Nintendo, went to the Playstation, not the Saturn. So.........what are you talking about again?

LOL? You do realise that SEGA was the one to deliver us stable online gaming first? Microsoft literally copied what SEGA made. The only "innovation" they ever made were achievements.

Yep, Sega has been setting up online infrastructure in gaming since the genesis days. They were the true innovators, but they needed Microsofts help to set it up and by the time the Dreamcast came around it was too late. They called microsoft into the gaming circle, much like Nintendo called to Sony.

All Kinect did was introduce a "different" way to play. It did not add extra power like the 32X did. Adding extra power via a peripheral shortly before their next gen console is what did Sega in with massive confusion. Not to mention that they competed against each other.

I agree but regardless it was still a mid gen upgrade, the only thing is they made a successful one where as Sega did not