Sony would of not went down in flames. They have enough developer support to keep them alive for along time. But, you cannot deny the fact that Sega becoming a third party developer for Sony, did not give them an extensive boost in quality. Well, wait, that is not fair to say, as we have not seen any of the offerings that Sega will bring to the PS2 game selection. But, more and likely, this move will help Sega and Sony.
I would not put it past Sega to return to the hardware buisness after they gain enough money doing this for a few years. Depending on how well this goes--and it should go great.
Did Sega backstab everyone? No, not quite. There was no way they could of kept the DC alive durin\' these console wars, even with great games. The interest was just not there for Sega and it was going to get worse. So, instead of letting the DC die a slow death--like the N64 (to some degree). Sega just called it quits and made the smartest buisness choice. It isn\'t pretty, as I think everyone (\'cept the most rabid Fanboys) hate to see Sega leave the hardware buisness. But the important thing to remember is, Sega made great games. And they will continue to make great games. Just not on a Sega based console.
But who cares? This gives everyone a chance to play some great Sega classics. Sony fans who would never own a Sega console, will not be able to play VF4. It really is exciting. Just look forward people, not backwards.