PlayStation 3

Each console was meant to make their companies money. But, each generation of consoles has had one console that was designed specifically to be stronger/more powerful/just plain better than its competition within that generation.

That, actually, is what happened to Sega. It was looking specifically at released consoles, and making its consoles better (though harder to program for, from what I understand). It was not looking ahead to what would come out within that console generation after its console, and so got stomped to the curb (figurtively speaking).

That Microsoft decided to play in that game of one-upsmanship does not surprise, all console makers play that game.

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