Yes I have asked this question, and yes I am going to put down my thoughts on this subject.
So how can Sega get back in the hardware market?
Well I say that if they have a hardware console idea already conceptualize or already in the making, then again maybe never...here's what I think they should do. For one, since they still make arcade games, why don't they make it where their possible new home console gaming device can be capatible with their arcade counterpart as they can have an online account on the system which can be transfered to any arcade system as if it was a gaming PC. They should continue to work on making the home gaming console playable with the arcade version as they can be a complementary to each other as if they were seperate gaming PC's, but can work onto the same server as an online game, but yet limited to the possibility. It should have High-Definition graphics like the PS3 or close, and be as polish as possible.
As for the games, they will need their best known selling games such as Shenmue & Sonic and plenty of new IP's with high end graphical appeal that will satisfy. They will also need to get 3rd party developers, mainly new starting game studios or independent studios as they will need to take a risk. They also need games like Power Stone and Phantasy Star Online to bring in that multiplayer and arcade feel to the gaming universe, if they still plan on making arcade games.
I'm not exactly a fan, but I think another gaming console in the wars wouldn't hurt. I say Sega should just do it, I'm sure it will turn out well for them if they decided to do so.