There has been some rumors flying around for sometime walking a thin line whether Sega will be going back to the hardware business... well here is the answer "No". 

For it's time the Dreamcast was one of the most innovative systems and had some of the most amazing games to date. Above all, it was the console that introduced us to Project Gotham racing, those funky memory cards, Online gaming, mini games which could be carried and played on your memory card, Shenmue, Powerstone, Crazy Taxi, Space Channel 5, Jet Set Radio and many more.

Don't know how you guys feel, but to me it's almost like a death of a Legend. 

http://www.ripten.com/2008/07/23/dreamcrushed-sega-says-no-to-dreamcast-2/

Well yeah, but I never expected a Dreamcast 2 so I've realized this since like 2002.

09/09/09, believe!

Well.. didn't see that coming...

Duh! who really thought that would happen??
*goes to his dreamcast, starts hugging it*

If Sonic was still good, I'd be hopeful for a new Sega system.

The only good Sega titles now are their more niche titles (The Total War series, Valkyria Chronicles, etc.), which would do absolutely nothing to sell systems.  It would die upon launch.

I know, but what about House of the Dead, a new Shenmue, Sega Rally's, Virtua Fighters, Alex the Kid remakes, Golden Axe's, Better Shinobi's made like Ninja gaiden, New Alex the kids, new Space Harrier, new Wonder Boy games, New Vectorman, New Crazi Taxi and jet Set Radios as well as Space Channle 5's.

Sega has a huge selection of games that they could make and remake properly. Remember Otogi on the xbox? that game was awesome!

LOL

You were 9, how do you remember that?

Sega indeed has a huge back catalogue, but today Sega lacks the skill to make worthy sequels/spinoffs of these games.

Don't forget Soul Calibur!