What I would like to know is what is up with the revisionist history pertaining to Sega's HW demise? Sony had nothing to do with it other than being another good option for gaming HW. Sega is the one who caused themselves to have to bow out of the HW market. And really it all started with Nintendo.
Sega was so focused on winning the 16-bit wars that they weren't really looking to the future. Instead of focusing their efforts on making the Saturn a great console, for both 2D and 3D, they were busy keeping the Genesis going. Of course, instead of doing that with just games, they came up with not one, but TWO HW add-ons for the thing that they needed to support. The Sega CD, which did have some neat games, but was hampered by having to pass all of its video through the limited Genesis. And the 32X, which was really worthless in the end. They also had the bright idea to have some games come out that required you to have BOTH add-ons. This cost R&D time and money that should have gone into the Saturn. It also took dev time and money away, as well.
Then, when the Saturn was about to launch, Sega got spooked by the upcoming PS1 and launched months before they were supposed to in a poor attempt to get out first. This ended up hurting them more than would they have launched when they were supposed to, since it caught devs/pubs, as well as retailers, off guard when they didn't get the extra months they needed to ready for the intended launch. This meant that many 3rd party devs missed out on the important launch, where their games would have flew of shelves to new Saturn owners, and mostly only Sega games were ready at launch. Retailers were pissed off because it cost them extra revenue from those other games and meant they had to find warehouse/shelf space for the Saturn before they were needed to. Some retailers, like KB Toys, even refused to stock it. It also didn't allow Sega to push the console for months before they launched, which didn't help with hype for the system.
The failure of the Dreamcast is really just a continuation of the Saturn's failure. It wasn't a bad system by any means, but like its predecessor, it just wasn't up to snuff compared to the competition. Also, not only were some devs/pubs and retailers still upset about the Saturn launch, but the PS2 was the successor to the most popular home console, by far, up until that time, and itself became the most popular of all time, meaning it was easy to choose which console to focus their efforts on.
I honestly feel like most Xbox fans are just bitter Saturn/Dreamcast fanboys who, instead of being able to blame Sega for their own failings, must make a scapegoat out of Sony. That would explain the blind following of MS, and defense of their obvious shortcomings, as the new company they have grabbed onto in their PS hate.