It's all good, man.
In a recent interview with MCV, Greg Thomas (vice president of development at Sega) responded to questions regarding their online gaming strategy and his views on the competition. Thomas revealed that Sega is prepared to go head-to-head with all competition, "I don’t care how many polygons X-Box can put out," he says. "It's all about who can deliver the next great gameplay experience. I'm not nervous about X-Box or PlayStation2, because we think we can make better games. No one will have head-to-head Internet play but us. What does worry me is Dolphin's sensory controllers (which are rumored to include microphones and headphone jacks) because there's an example of someone thinking about something different." Statements like this shows the continued respect the industry has for Nintendo and their dedication to bringing something new with each console they release.