I think the most reasonable way Sega could possibly get into gaming would be to make a niche Handheld that appeals to Sega Fans and Cheapos- A "Dreamcast Portable" (DCP) that is literally a portable Dreamcast, costing $99.99 at launch with $24.99-$29.99 games announced this E3. It could be sold at break even price initially, then sold at a profit later. Even if they only sold 5-15M, they would make a profit. They could have a really really cool 9/9/2009 add campaign as well :D

It could have a single joy stick, the Dreamcast Dpad and buttons, should buttons, widescreen display, no multimedia features, quick loading carts, and an okay (6-9) hour battery. Mostly 1^st party games, lots of DC ports and a few Sega Saturn collections and lots of “classic packs” (genisis/CD ect) along with limited 3^rd party support. What would Sega have to lose?

Ugh, why won't people just let the Dreamcast die? It wasn't even that great.

And as for your idea, it only works if they can convince developers to make good games for it. Remember, there are costs beyond just manufacturing the system.

Sega is washed up. They need to just stick to games in my opinion.

Give it up Hawkeye! lol, SEGA will stick to games and not a console.

sega had 1 success full console though they did have some amazing games, but that sega is gone now

Sega no longer have the developing talent to pull off a games console, especially one that would have next to 0 3rd party support.

They would find some way to screw it up. This is SEGA we're talking about here. They managed to make launching early a bad thing.

never gonna happen since Sega games aren't what they used to be, and this is coming from a Sega diehard

meh, one more snack for the DS.