Sega was too early with several innovations like online game downloads, which meant they weren’t profitable enough. Technically however they were ages ahead of the competition who later gladly absorbed their knowledge.
The Sega Saturn is a prime example of how that was not the case. They brute forced it and it cost a fortune as a result. Sony essentially matched it with generic parts for cheaper and developed it in a shorter amount of time along side them, the Saturn build did not directly inform its development.
Edit: in one of the books I read on this subject - I think it was either Replay or Console Wars, there is a great account of how when the Saturn dropped somy was very nervous because it was out well before the PlayStation was released. They immediately grabbed one and disassembled it, only to discover the monstrosity under the hood that made them feel very secure in their decisions. The two dedicated chips getting 3D to work right out the gate drove the cost up immensely. They knew they didn’t need to beat Sega to market because they were bleeding cash at an unbelievable rate. The game sales would never cover that.
Sega was too early with several innovations like online game downloads, which meant they weren’t profitable enough. Technically however they were ages ahead of the competition who later gladly absorbed their knowledge.
The Sega Saturn is a prime example of how that was not the case. They brute forced it and it cost a fortune as a result. Sony essentially matched it with generic parts for cheaper and developed it in a shorter amount of time along side them, the Saturn build did not directly inform its development.
Edit: in one of the books I read on this subject - I think it was either Replay or Console Wars, there is a great account of how when the Saturn dropped somy was very nervous because it was out well before the PlayStation was released. They immediately grabbed one and disassembled it, only to discover the monstrosity under the hood that made them feel very secure in their decisions. The two dedicated chips getting 3D to work right out the gate drove the cost up immensely. They knew they didn’t need to beat Sega to market because they were bleeding cash at an unbelievable rate. The game sales would never cover that.