I agree that SEGA made some serious mistakes, which all cost them dearly. Stupid management (i.e. "I am in charge, and so I make the decisions, and YOU SHUT UP!") has always been the reason why talented people left companies for better places to work, and I am sure that is what happened at SEGA. Yes, there was the few famous people like Tetsuya Mizuguchi, Yu Suzuki and Yuji Naka left whe they had merged with Sammy, but that isn´t going to be enough.
I think that a combination of over-confident management, and employee dissatisfaction caused key-developers to scram, and thus leaving leaving SEGA as an empty shell. Only a shadow of it´s former great self! Could THAT explain perhaps why Sonic has been boring, dull ever since they went into 3D with the Blue Hedgehog? Or "forgot" to re-invent the old cherished franchises that had brought them so many fans? Or took half a decade to bring out the sequel to SEGA Rally 2...on a Sony console exclusively? It´s kind of ironic that they got to develope games for Sony, because a lot of disgruntled SEGA gamers when over to Sony when they got ENOUGH of SEGA and their flopping consoles! So the SEGA fanbase was split between Nintendo, Sony and Microsoft consoles and remain so to this day. I can vividly imagine developers having shivers running down their spines at the thought of the implosion they were witnessing at SEGA!
However, I am STILL mad at Sony simply because they took such huge advantage of the sinking SEGA, instead of thinking like Nintendo does: encourage creativity in the industry and HELP SEGA, and NOT just think crudely in terms of money! Nintendo has taken the initiative to help a lot of people see the right way to make games, and this, I believe, has saved the industry from an inpending crash! But Sony will probably never understand that! To them it´s not games, creativity as much as it is hard, cold cash! And THAT is where the gaming spirit dies. So I am eternally gratefull that we have Nintendo today!
They are truly...the King of videogaming!!!!