Pardon my language, but really, what an absolute piece of shit way of fucking drawing their geometry. They must have been out of their minds when they considered that sensible.
Besides competition coming from then relative new challenger in Sony, it is rather foolish to assume that the Saturn even in its final form was a bad design.
You're looking at tech hardware being designed in 1992-94 when polygon graphics hardware like the Model 1 and Model 2 were insanely expensive.
You have to sit down and read up on Sega System 32 Arcade hardware which used sprites to do 3d like games like Rad Mobile, Out Runners (the sequel variation to Out Run of the time) and G-Loc and others of the early 90s.
Keeping in mind that Nintendo was only able to release something in 1996 after already knowing the cards on the table.
Although on paper the PlayStation design seems to beat the Saturn, it also isn't a good design either...because they are both alternate designs of their time.
There's youtube footage of the Arcade games I mentioned and from an engineering and software design point of view (no matter how wrong we think it could be) there are reasons why Sega's devs and hardware people may have made the Saturn design for that time given that making polygons look as "exciting as what was possible in those System 32 games" was definitely not possible even on PlayStation.
A more open mind is required to understand the hardware design choices of the time and also experience playing those games as well.
Virtua Fighter 1 was definitely impressive for a home reprogrammed conversion that used the Saturn hardware by top programmer devs at Sega AM2...even Daytona USA in it's rushed form is and contains some impressive qualities not seen or duplicated on PlayStation even with those early dev tools and knowledge in 1995.
Virtua Fighter Remix which was really a native ST-V Arcade hardware board game variation to Vitual Fighter 1 as a lower cost solution to get more affordable arcade cabinets out was a pure Saturn game and set up to what we eventually got with Virtua Fighter II.
Also do keep in mind that Sega Saturn was extremely successful in Japan due mainly in part to the Virtua Fighter phenomenon which thanks to an excellent home version, helped keep the momentumin sales.
The Sega of America launch being jumped up, plus rushed software (Daytona USA) plus somehow giving too much credibility to the mainly U.S. print magazine mandate that 3d polygon graphics were good and 2d graphics was bad was not helping things hence lacking some larger number of 2d games and Japanese localizations.
The 32X did indeed cause a lot of previous damage and yet that again is mainly a Sega of America initiative and problem.
Not to mention the lack of a focused monthly Sega print magazine (Sega Visions was quarterly and only available if you had a subscription as opposed to Nintendo Power which shows a lack of strategy in Sega of America's part)
Hence had Sega Saturn as it was even with the "hard to program for" (western media hype) label, still sold or had a proper launch in September with all retailers on board then there would have been less damages caused even if price was $400.00 because steady sales targets instead of desperate number bragging (a problem which helped sink the Dreamcast) would have resulted in a more stable sales amd software development ramp up.
Causing that by 1998 a Saturn which wouldn't be dropped right away and software to truly make leaps.
Tomb Raider is very telling and Core Design was making Tomb Raider 2 on Saturn even before any deals with Sony hence even as a timed exclusive it still would have come out and discussion would have been different as it is if you look at it from a Japanese developer and gamer point of view.
I think Grandia is the only real example of this, and I don't remember it downgraded. But that is a game conversion crying out for the DF treatment!
There's a youtube video that compares the graphical effects on Saturn versus PlayStation and the lack of PlayStation not being able to deliver a duplicate.