Exophase
Nothing good will ever come of Exophase.
32x was definitely a failure and came at a time when Sega could not afford to fail. It may not have been the sole factor for their eventual exit but it must have contributed, at least to the start of their gradual decline.
And Sega discontinued Genesis in 1997, I don't see how that was too early.. SNES was trouncing it in 1995 and then continued to have several standout titles in 1996 (DKC3, Kirby Superstar, MMX3, Lufia 2, Street Fighter Alpha 2). What did Sega have by that point? Vectorman 2 is the only game worth mentioning (Sonic 3D Blast was a dud). There was just no point selling it so long beyond when anyone wanted to do games for it.
And Sega discontinued Genesis in 1997, I don't see how that was too early.. SNES was trouncing it in 1995 and then continued to have several standout titles in 1996 (DKC3, Kirby Superstar, MMX3, Lufia 2, Street Fighter Alpha 2). What did Sega have by that point? Vectorman 2 is the only game worth mentioning (Sonic 3D Blast was a dud). There was just no point selling it so long beyond when anyone wanted to do games for it.