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...do you remember this deal back in 1994?

http://query.nytimes.com/gst/fullpage.html?res=9407E5DD1331F934A25752C1A962958260&sec=&spon=

Back then this was a LOT of money and was wondering if anyone knows what became of this deal?  Why would Sega blow 90 mil on nothing? With Atari involved, I have a feeling this had something to do with the 32X.