Why did Sega pull out of the console wars?

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The blame lies in Sega Of America for developing the 32X when Sega of Japan were at the same time developing the far superior Sega Saturn. God knows why the same company was developing 2 different gaming platforms.

That tarnished Sega's name forever, especially for customers in America who realised 32X was rubbish, and I think Sega were doomed from then on to be honest.
Which is a shame really since Sega have made better games than both Sony and Microsoft put together. Also, give me Sega's games over Nintendo's anyday.