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The system launched with 4 games. Doom was rushed and had missing levels and weapons. Cosmic Carnage was garbage. Star Wars Arcade was pretty close to the arcade game, but the sound was pretty bad. Knuckles Chaotix used the Genesis hardware, with the characters being drawn by the 32X. Most of the games that arrived later, really didn't look like they were miles better than Genesis titles. NBA Jam TE, Golf Magazine Presents 36 Great Holes, Pitfall: The Mayan Adventures, Mortal Kombat II, NFL Quarterback Club, WWF Raw, Brutal Unleashed, RBI Baseball 95, Toughman Contest and Star Trek: Starfleet Academy Starship Bridge Simulator, looked pretty much like your basic Genesis games.
Yes, clearly most of the early games were rushed, but that's common for EVERY console ever released, especially ones released in the xmas season.
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The early arrival of the Saturn in North America had very little to do with 3rd party support moving away from the 32X. The Saturn was launched in Japan on November of 1994. The Playstation was also launched in Japan in 1994. The 3rd party publishers were already gearing up for those consoles in 1994 and they offered less risk since they were CD based.
I never said the early arrival of the Saturn was to blame for 3rd parties dropping the 32X... SOJ was to blame. Devs made that abundantly clear when they announced their dropping of projects mid-way through '95. 3rd parties had no qualms about supporting both the 32X and Saturn if left to their own devices, just as they had no problems supporting the Saturn and the PSX (and eventually the N64). Many 3rd parties still supported the 3DO and other niche platforms. It was well known in the industry that SOJ was pushing devs to transfer all 32X teams to the Saturn to speed development of Saturn games.
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The 32X is a cool item for collectors, but it wasn't something that I had bought, until it was in the bargain bin. There was already too much hype building up for the Playstation and Saturn when the 32X arrived.
I do agree, looking back on it from now, that the 32X didn't have a chance... Sega shouldn't have gone ahead on it given everything else. A better route would have been the Jupiter route: release a cart based Saturn for the low end, and the CD based Saturn for the high end. You can see they considered it... there's a cart port on the Saturn that can be booted from.