It was Sony who pwn'd Sega. Sony was cranky at Nintendo for cancelling the partnership to create the CD drive for the SNES that they helped develop, so they went on to create the PlayStation to get revenge and accidently took out Sega instead.
Yep. That was the biggest mistake Nintendo ever made (though there was more to it than that). Yes, an even bigger mistake than the Virtual boy
Needless to say, it was the best move Sony ever made.
I remember back in the SNES days saying how it would be amazing if Sony ever made a console (I was a sony fan boy back then when it came to electronics). A few years later they did and look where it got them.

