I absolutely agree with Tanooki in the Sega CD aspect. I think that with better titles it really could have taken off especially after seeing the quality of titles such as Sonic CD. They had to either put everything into the Sega CD, or never release it in the first place and put all effort into the Genesis. Trying to support the Genesis, the Sega CD, and worse the 32X was a bad business decision. A better way would most likely be to just never release the Sega CD or the 32X and to put all effort into the Genesis. I'm going to be the one to say that the Saturn was a flop. I think that it could have done ok if it was backwards compatible with the Genesis and got as much 3rd party support as the Genesis and put out more quality titles. Still, it wasn't entirely necessary as SNES went straight to N64, so could have Genesis went straight to Dreamcast, however that in itself would result in either a premature Dreamcast, or Genesis not being able to survive long enough for the Dreamcast to come out. Sega made it to the Dreamcast still alive, however, and DID put out many quality titles. When comparing the Dreamcast to the PSX or N64, it is the clear victor, but it simply couldn't compete with PS2. As someone mentioned earlier, this could had been avoided if Sony and Sega joined forces and co-developed the PSX/Saturn as one console, then Co-developed the PS2/Dreamcast as one console. The result could have easily challenged Nintendo, and then Sega would have been on top. However, that is not what happened and so here we are with one of our favorite little companies holding on for dear life.

I'll respond with another question then: does anyone think sega has a chance for expanding and building once again? Clearly there are quite a few licenses that they own that could bring in some money and with effective advertising and use of their franchises, I believe its possible for them to pull out of the slump they are in, especially because there is quite a following for many of their games. I'm not saying that they would be restored to their former glory, but anything could happen in regards to them getting out of their slump. Dreamcast 2 still is just a dream with little chance of ever coming out, however they can still make themselves a presence in today's market by appealing to the considerable fanbase they have with more effective advertising and overall more games. Here's hoping for a turnaround.

EDIT: Awesome thread by the way, love the discussion on this