You know... I really hope SEGA don't go back into hardware. I don't want to have to buy even more consoles. >_>
the problem with Sega being third party is that they do lots of exclusives.
For example, Nintendo usualy gets Sonic priority, Virtua Fighter has been exclusive to Playstations, and Xbox gets all the decent stuff (JSRF, Outrun2, Panzer dragoon orta, Shenmue 2).
This will only get worse this generation, with the 3 consoles being so different. Sega fans need to buy more consoles with Sega as a third party than they needed to before. All of Sega's genious and majesty under one roof is preferable to it being smeared clumsily between consoles.
Also, Sega are terrible at choosing which consoles to put games on. Look at the awesome Xbox lot, they all sold extremely badly. The thing is, anyone could have predicted that because Sega games clash violently with the Xbox's target demographic.
Sega need to dish out their games more evenly methinks. Nintendo fans are big fans of Sega, as the nintendo fanbase harks back much further than the Xbox or PS community who mainly derive from the PS1 generation. But if ninty fans are too attached to their Nintendo consoles to reach out and buy other consoles, Sega need to give them more love if they want to make any headway towards being a top 5 publisher.