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Well... Sonic 3 was so much bigger and better than Sonic 2, it had to be split into two games, with the 2nd half of Sonic 3 being called Sonic & Knuckles. There was even plans to make a cart that contained the complete edition of sonic 3 & Knuckles.

But despite sonic 2 selling as well as it did. Despite sonic 3 & knuckles being much better with added features, it didn't sell as much as Sonic 2. So, it's not all bad. I think Nintendo is doing fine without rehashing the same game over and over like Street fighter II, III and IV.