Consider the licensing fees that they pay to nintendo?

Consider how many of their other big games probalby didnt turn a profit.

Sonic and the dark brotherhood? (big name devoloper bioware game has only sold 250k)

Sonic unleashed is probably breaking even at this time but the profit is nothing substantial yet.

Phantasy Star Zero has sold very little in japan 

They have some hit sellers but nothing that can be bringing in revenue enough to create a new hardware platform.

No...

Sega is not a bottomless pit of money, and besides, we're amidst an economical downturn.

lol is all i gotta say

I find it highly unlikely that Sega will decide that a recession is a good time to make a return to the business that they were already soundly defeated in. Maybe several years down the road when things get back to normal, but not anytime soon.

Sega console with Dreamcast and Saturn BC would kick ass(in good way).

That's some arcade stuff, read it on a french site.

Of course not... SEGA is weaker now than it is when they had to leave the market. No chance in hell.

If this happened Sega would secure a Chapter 11 instead of a Dreamcast-style restructure. This is wishful thinking and folly. I think it is a emulator game format maybe akin to Backbone.

Sega should make the console. Microsoft should make the OS and transplant Live into it.

Since Microsoft has gotten rid of most of it's studios, only been keeping developers for 1 game and then letting them go, this would make sense. All they have left is a backbone for a gaming architecture, which is Live.

Sega's name would sell the console in Japan and the US.

Sega's roots are in the Arcades. XBLA could cater to that nicely. I'de love to download all of Sega's past games for all their consoles.

Sega is king man and if they created a console/handheld i would by it first day. then next gen i woudld be a sony sega console owner