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Fei-Hung said:

I think there are a few options, but I think it was a combination of things:

1) bad management at Sega by wasting a lot of money on add ons like the 32X and Mega CD.

2) Nintendo screwing Sony, setting Sony onto the path of Playstation.

3) Sony's pricing for the PS1 whilst Sega going higher in price.

4) Sony's huge money hatting 3rd parties.

5) Dreamcast not having a DVD player.

2) That is false narrative.  Both sides tried to screw each other in SNES CD deal.  Sony tried to get rights of all Nintendo IPs that were released on console.  Of course Nintendo would back out of deal if it meant losing rights to IPs.  Don't try to rewrite history.