“By 1999, the Ultra Nintendo was reaching its apex, while the Sega Saturn had begun its final decline. Sega's fortunes had taken a turn for the worse, and despite some successful titles like Soul Calibur, Resident Evil: Code Veronica, the surprise hit NYPD: Narcotics Squad, and of course Sonic the Hedgehog 5, Sega couldn't reverse the Saturn's fortunes enough to put a dent in Nintendo's rapidly growing market share. The Ultra Nintendo was rapidly becoming not just the most successful game console of its day, but of all time, and by the end of the year had even surpassed the worldwide sales total of the SNES-CD peripheral that had given rise to one of the most successful partnerships in gaming. Nintendo and Sony were on cloud nine, and had even collaborated on the Game Boy Nova, which launched in Japan at the end of the year to more accolades and record-breaking sales. But even though Sega's present looked bleak, its future looked bright. The Katana was on the horizon, and was poised to take advantage of two of the Ultra Nintendo's biggest shortcomings: its lack of a robust online multiplayer system, and its lack of DVD playback. And Sega of America was in the midst of a restructuring, one that would eventually bring in the energetic Reggie Fils-Aime to head the company's North American branch. Tom Kalinske, the man arguably most responsible for Sega even being able to challenge Nintendo in the first place, was about to be kicked to the curb. And it was amidst all of this that Microsoft was finally preparing to enter the fray with its Xbox gaming console that promised to bring the best featuresof PC gaming to the living room. Numerous other consoles had made such promises and had failed, but Microsoft had brainpower and money on its side, and was looking to muscle its way into the race, either to become a legitimate third competitor or even to push out Sega during a time of transition. The king of gaming was still on its throne, but as the new millennium began, Nintendo would face a most unexpected challenge, one that would permanently alter its creative direction and one that would change the course of video game history forever.”
-”The History Of Console Gaming: Year-By-Year (Part 7)”, Wired.com, June 26, 2012