for all the complaining about how bad Sonic Boom is people forget that Sonic 2006 was wildly profitable. From a business standpoint it's hard to argue with that. Sonic Boom is awful, but not much worse/glitchy than 2006 was. Then there's Aliens:Colonial Marines. Gear Box ripped them off. Period. It's painfully obvious that they took Sega's money and spent it on Borderlands 2. It would cost more to litigate that than Sega would ever get back though, so they're screwed. You could argue Sega should have kept a closer eye on Gearbox, but games like Aliens:CM were Gearbox's bread and butter. It's ridiculous that they'd pull that on Sega, since it pretty much burns every bridge they'll ever have in the industry. But then again who would have thought something as mediocre as Borderlands (which I like, but let's face it, it's just really, really OK) would be one of the biggest games of last gen.
So what else has Sega done wrong since the Saturn? Yes, the Saturn/32x were epic, epic failures. I guess there was Shenmue, but honestly that could have been it's generation's Grand Theft Auto.
Now, what's _really_ killing Sega is the same thing that's killing _all_ Japanese game makers: US and European companies are eating them alive. Heck, bloody Farcry 4 is selling well in Japan. Meanwhile Final Fantasy games are doing so-so.
There's a video blog that did a good video on it, I think it's
here but I might have the wrong video. Either way the kinds of games the Japanese did best have been taken over by the likes of Call of Duty and World of Warcraft.