So you're saying the more innovative company will die out?
And you think Sega is more innovative than nintendo?
Nintendo is innovative too of course, my main point was that in order to stop piracy they've sort of limited themselves in ways. The biggest example is the N64. They used outdated cartridge technology which limited the games, alienated a lot of third party developers and caused them to be stomped by an inferior system like Playstation. They pretty much did the same thing with GameCube as well. They also always seem a bit "gun-shy" about actually releasing thier innovative ideas (look at the useless extension ports on the bottom of most Nintendo systems).
Dreamcast however used a much simpler development system which third party developers loved and was very inovative, but it was easily hacked. Sega took the chance, tried to stay on top, and suffered the fate Nintendo was so terrified of.
So innovation isn't doomed to fail.... but it seems like companies succed more when they keep flooding the market with the same old crap.