You do realize it's not just Sega right? Just look at how well any of Big N's Mature rated games sold or why we don't see them but once in a blue moon?
Just look at No More Heroes 2--not going break the 100k mark even though it was reviewed favorable. Yeah it's not exactly a casual game and the marketting budget was low but it should have sold more. Red Steel 2 again, getting better than average reviews but it's not hitting the sales (think it's doing better the NMH2 since it hit 100k at least.
I liked No More Heroes and NMH2, but honestly, they weren't anything spectacular. And they were most definitely niche titles. Red Steel 2 I was sold on with how awesome it looked and everything, but then there is no multiplayer at all? FPS needs multiplayer these days, and they could have easily done a two player sword fighting mode. That made it no longer an insta-buy for me, though I will get this in the future. MadWorld I was highly interested in, but because of the short length and repetitive nature, I never bought it.
The real issue here is not M-rated titles selling. It's that the M-rated titles available on PS3/360 are of much higher quality. Give me an actual well developed awesome M rated game that competes with those on the other systems, and plenty of people would buy it in a heartbeat. Why would I buy Madworld, when I can buy God of War 3, or even Ninja Gaiden 1 or 2 (Sigma for PS3)? And No More Heroes is a niche title no matter what system it would have been on. That's what hurt The Conduit. It's a decent game, but it in no way truly competes with the FPS offerings on the other systems.
THE JACKEL