1.
Better technology doesn't win alone. Sega had superior 16-bit graphics but needed distribution, games, and pricing to beat Nintendo's installed base.
2.
Complexity kills platforms. Five hardware iterations in five years confused consumers and fragmented developer support—$1,200 for full Genesis setup destroyed focus.
3.
Sometimes the best business emerges from the wrong one. Losing the console war forced Sega into licensing IP across platforms—a better margin business than hardware.
