They started losing trust after the Sega CD and 32X addons irritated their fans. The next generation's Saturn was destroyed by the Playstation and by the time Sega was able to regroup and put out an amazing console, their fans had moved on.
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Exactly! They were sadly almost destined to room before the Dreamcast was even launched. In fact, they were so low on cash, allegedly their president personally threw ~40 mill. at the project!
Ahhhhhh, memories.