This is pretty cool, i didn't know they had a saturn 2 planned, or is that what became the dreamcast?
Well it gets very confusing. See, in some articles, EVERYTHING that was worked on post Saturn is concidered "Saturn 2". However factions within Sega wanted the company to scrap the Saturn all together in favor of a more powerful console with Lockheed Martin Real3D technology. There was also the failed Nvidia-Sega system using the never-used NV2 chip. These were certainly not Dreamcast IMO.
I think even if they did get a more powerful gpu in their console they would still not succeed as they had already doomed them selves earlier with the mismanagement of the CD and 32x addons for the Megadrive only to get abandoned too soon followed by lackluster support for the difficult Saturn as it was launched too soon (surprising developers and potential customers alike) as a response to the announcement of the PSX, leading to yet another console being abandoned too soon and a new console rushed out. Sega payed dearly to be first.
It wasn't really a fault in hardware but stupid management and poor communication. Fastest and most powerful isn't what defines a successful console as there is a whole host of unsuccessful powerhouses attesting to that.
Too many people were simply unwilling to commit to Sega at that time due to their track record in support of their own hardware or rather lack their of.
I had the MegaDrive II with the MegaCD II addon and the 32X, while i did like them they left a really bad taste of poor support and I was fortunate to have sold it all while it was still hot and got a lot of cash for it.
It was amazing to see the Dreamcast in action back in the day and I did want one but me and most of my friends had already decided it to be a safer bet to wait for the Ps2.
Sega should have never released the 32X at all. They should've made the MegaCD/SegaCD more powerful in 1991/1992 and hang on with that until 1996 when a more powerful console (than that Saturn that was made) could be released. Or at least provide an 3D cartridge upgrade for the existing Saturn.
Dreamcast (Katana) was amazing back in 1998/1999 but was surpassed too quickly by Nvidia chips and other consoles. I don't count Dreamcast as a Saturn 2 project because of the timing. All the quick Saturn replacements or upgrade (Nvidia NV2, Lockheed Martin, 3DO M2, and others) fit into a 1994-1996 timeframe, before the NEXT generation of Sega console was in development (Black Belt and Katana) which was in 1997.