/vr/ - Retro Games

Real answer: the entire Japanese game industry has been a long, patient confucian plot to culturally infiltrate and memetically cultivate the West. There's a reason all the big names have/had headquarters within spitting distance of the old imperial palace in Kyoto and have known yakuza ties.

Sega had served its purpose as the Pepsi to Nintendo's Coke and it was time to retire them to make way for phase 3, with Sony bridging the rest of the market (you don't really believe that "Nintendo Playstation" story is how it really went down, do you? It was just clever marketing to give them a sense of legitimate parity with the market leader).

So Sega took a dive.