BizWeek offers an essay on how failed videogame platforms are good for the business:
Of course, whereas a market leader’s role is to provide stability, there is a difference between stability and stasis. Ideally, the “big guy”, whoever it is, must represent the basic ideals of the medium as it currently stands; the moment it no longer provides that representational force, the entire industry begins to shift on its foundation. People grow restless, lose interest because videogames no longer “speak” to them. Intuitively, new users won’t be attracted by an industry that doesn’t seem in touch with where it’s going or where it is now. Sales slump; everyone blames everyone else, and the industry just becomes all the more conservative because if it doesn’t know where the draft is coming from it’s best just to wear a coat to work, leading the spiral ever downward until someone steps out of the crowd and realigns the industry with its principles, creating a new status quo — as Nintendo did twenty years ago, as Sega kind of tried to do five years later, as Nintendo’s trying to do again today.
The thing is, by nature the most vital area of the game industry lies not so much the mechanics of the upper echelon of the industry – rather, it rests below the radar of your typical analyst, in the dark, greatly loved yet poorly exposed corners of the market. Though by popular definition you might well call them failures, without your Sega Saturns, your Atari Jaguars, your Amigas and GameCubes and NeoGeo Pocket Colors, the industry would be an autocracy, governed by a single dictate — indeed, one of limited perspective and shallow, if broad, concern for growth.
For the record, official VM buddy Sang & I played the heck out of the NBA 2K2 game on the Sega DreamCast.