Microsoft has lost billions of dollars and has had tons and tons of stock holders give up on them demanding they drop the Xbox name. If that does not force them out, nothing would have. It is not like any of SEGA's games on that platform disappearing would have changed much of anything.
What SEGA should have done is not made Jet Set Radio, Skies of Arcadia, Shenmue, games like that. As it has been brought up here, SEGA would just put far too much money into single games. If you split up the production on those you could make like... 40 ChuChu Rocket type games.
But it does not matter, SEGA was pretty much doomed in the console market once they released the 32X. People lost hope in them when the Saturn failed to impress, and even then, once the time the PlayStation 2 came around the "PlayStation" name was just too strong for SEGA to compete with. I cannot even count how many people I know of that still call the Genesis "The SEGA".
The truth is that the medium has always been mainstream. Games becoming more cinematic or more realistic are not the original concepts or styles dying out, it is just a progression of technology. People left, right and center are saying games like Heavy Rain are an entirely new genre and is not similar to anything conceived when really it is just the evolution of point n click games, as was the same with Shenmue. I hear people saying titles like Halo are ruining the industry, but how could it? If you were to look at the general design of the series really hard, you would find it shares ideas of games to come before it in different genres. I mean, I could name concepts in it similar to platformers, RPGs, fighters, racers, rail shooters, even puzzle games. I am certain if it were created 15 years earlier than it was that it would be closer to Mega Man because it is what technology allowed, that is it.
The opposite is true too. Now there are a flux of "Simple" games coming out all of the time, whether it be for Wii, PC, or downloadable platforms, but people complain more! I do not understand what "Gamers" want anymore! They complain about games being too big, they complain about games being too small, why not just shut up and enjoy what you think is fun?
At the end of the day these are just companies trying to get people to buy their products. They may have employees that dislike others from another company or brand, but really all these "Wars" happen to be are nothing more than looking as to what your competitors do and how they fail or succeed, then putting out more products that will hopefully do better than them. Nothing more, nothing less.