Sega should never have launched 32X at all. Having just *one* upgrade add-on that splits the userbase is bad enough. Having TWO is just beyond stupid.
Instead they should've put better tech into the Mega CD in 1991 or 1992. Give it a chip that allowed more colors on-screen, more sprites, background layers and better scaling & rotation.
So this thing
should've had the ability to run any 16-Bit Super-Scaler arcade game, including games such as:
Sega should've made great videogames the focus of SegaCD. Instead of those horrible FMV movie games. More games like Lunar and AH-3 Thunder Strike. Put Sonic 4, Phantasy Star 5, as well as all of Sega's scaling arcade games like Space Harrier, OutRun, Super Hang On, After Burner, Power Drift, Galaxy Force and other sequels to all the best Genesis games (Shinobi, Golden Axe, Streets of Rage, Gunstar Heroes, etc) exclusively on SegaCD to make more people buy the hardware. Now, SegaCD *was* selling decently enough for awhile. In fact I think it's the best selling add-on of all time. If Sega had put even greater effort into it, from both a hardware & software standpoint, it could've gone down as a modest success rather than failure. Then quickly release and push a Genesis+SegaCD duo at a much lower price than the Wonder Mega /X-Eye or CDX. Perhaps get Square to put Secret of Mana on SegaCD instead of SNES CD or SNES. Try to create a snowball effect where SegaCD becomes the CD-ROM console standard, eclipsing the PCE CD family, Commodore CD32 and 3DO. SegaCD should've been pushed through 1993-1995, without the mess of having SegaCD, 32X, Saturn all in that '94-'95 timeframe. Sega would be preparing a proper-3D-capable Saturn for late 1995 or early 1996 while selling SegaCD at least until the launch of Saturn. Don't do SVP or 32X. Save all the 3D polygon stuff for Saturn. The Sega we have today may have been a far different and stronger company, still producing consoles in this current generation.