Well, to be fair, the actual reason that SEGA exited the hardware market, was because they ran out of money (rather obviously, I know, but let me finish). This was do in part to massive interest surrounding the PS2, leading up to it's launch. Now, Sony can't be blamed for everything. They have every right to push their new hardware, and the fact that no-one will ever make a console as good as Dreamcast doesn't alter that fact.
Sony can't have been expected to say "Well, buy a PS2 if you've already got a Dreamcast. Otherwise, get a Dreamcast". They need to market their products as well as possible. Truthfully, though.
This is were Sony fall from grace, as far as I'm concerned. They're such LYING CUNTS when it comes to their next major hardware release. 'It can do this and that' etc. No it can't, Sony. The PS3's 'capabilities' (as claimed by Sony) have, by many, been proven an impossibility. I won't go into the technical side too much (or the PS3 side too much). Put simply, Sony haven't taken into account certain common-as-muck computing issues (which are multiplied tenfold, thanks to the PS3's Cell) in their spec sheets.
Lies. Just like the lies on the run up to the PS2's launch. "Look at this real-time video" they claimed. Yeah, piss off. Look at that same video now. As of January 2006, the PS2 STILL hasn't produced graphics of that quality.
How long must we wait? Until the PS5 comes out, when developers finally harness the 'full potential' of the PS2's hardware? Fuck off. In fact, Sony, the Dreamcast is actually graphically superior to your PS2 in a few notable areas.
You did it with the PS2, and you're doing it again with the PS3. Anyways, yes, Sony should take a major part of the blame. SEGA however, are not completely guilt-free of the Dreamcast's death. Although they make sublime games and consoles, SEGA are (or were), complete fools when it comes to maintaining a business. Throughout the Dreamcast's life, they were haemorrhaging money at an alarming rate. SEGA are not Microsoft, and cannot afford to lose money like that.
They dwindled good money away on rubbish hair-cutting ads, and big showbiz bashes. They spent alot on crap ads, none of which showed the actual games or the console. They spent a gargantuan sum making Shenmue (still the most expensive game ever made), yet never advertised it at all (do you remember seeing it on TV?). Consiquently, it didn't sell anywhere near enough to make a profit (though it did sell reasonably well, despite what some may tell you).
Ad a hefty rival like Sony, who actually know how to get something into the public's brain, how to advertise. A hefty (lying cunt of a) rival with a new console to push, no less, not forgetting Nintendo, either, and it's easy to see how SEGA lost out. The kitty simply ran dry. Sony aren't completely to blame (though they bear a major part of the burden, and should be ashamed of their outright lies), SEGA should have handled things better.
So here we are, 2006. The next wave of consoles are all raging about their online capabilities (a Dreamcast first), connectivity (a Dreamcast first), and one even has a controller which seems to work (and look) startlingly similar to the SEGA Bass Fishing controller. They bring one or two of their own ideas. But mainly, they're just thieving from the grave of the Dreamcast, and claiming it as their own. Most of you wouldn't even know, though...