TL;DRI didn't vote for any of the above reality options as i feel and think there should be another option. My reality would of been no invention of Sega CD and no invention of 32x with all that time and money spent investing and pushing the MD and developing games for it. And then a better designed Saturn with one CPU (would a 40mhz SH2 with 8kb on chip cache have been competitive overall with Sonys mips cpu?) and one GPU or VDP (mabee working with SGI to improve their design that Sega turned down twice) and a more unified ram setup. Also adding hardware audio & video compression to the systems abilities and having excellent SDK'S. And finally having the system backward compatible with MD/GEN via the cartridge slot at the back and having a seperate slot for memory card/s. Perhaps an early 95 Jap launch and a Nov/Dec US & Europe launch and price it the same as Sony's machine. Then once out pester, beg, plead and throw money at Squaresoft to get them to agree on Saturn exclusivity. And i don't think they needed a Sonic game as the PS sold on the basis of its strong 3rd party support. A Sonic game alone wouldn't of sold the Saturn in the way the PS sold no matter how good it was.
Sega's reputation would of been probably the strongest in most of the world come the 32bit gen due to the MD gaining considerable market share and popularity coupled with the fact that they wouldn't of buggered up with 2 hardware failures and due to their Saturn being excellently designed like the PS so that anyone could work on it plus the fact that Nintendo dissappointed people by going with cartridges and for those reasons i think they could of got the exclusivity deals they needed to sell hugely in the 32 bit gen particularly Core Design and TR and many of the other good selling PS games would of appeared on Saturn. Then come the 128 bit gen due to the Saturn selling way more than in the real reality (i predict at least 50m units compared to this reality's 9.5m) and Sega having the best brand name in the gaming world and thus being financially waaaaaaaay better of due to the money they made in the 32 bit gen they could of launched a more powerful but just as easy to work on Dreamcast at the beginning of 2001 in Japan and around November in the US/Europe which was fully backward compatible with Saturn games and with DVD games storage and DVD movie playback (licensing fees easily afforded due to their increased financial position).
Yes the PS2 would of came in March 2000 but remember in this alternate reality it wouldn't of been anywhere near as anticipated due to the PS1 selling way less and the Saturn selling alot more and thus Sega could of just released a statement to all the gamers in the world along the lines of ''don't bother with PS2 as we are working on the Saturns successor that will be even more powerful, will also feature DVD playback and will be backward compatible with Saturn games'' and the control pad would of been better designed with dual analogues horizontal to each other like the dual shock and 2 top L & R buttons
We would of then probably seen a scenario with PS2 that we saw with Dreamcast as in it sells well at launch but as 2001 approaches and the Dreamcast comes out 3rd parties and gamers all switch their attention to Sega's machine and the PS2 sales start to dry up. And remember without the Playstation brands ultra strong reputation in this alternate reality the hard to work on PS2 would of actually counted against them alot more. All the GTA games all the FF games and more than likely EA'S sports games and the MGS games all would of come to Dreamcast and it probably would of sold like the PS2 sold in reality.
Oh and one final thing if i was the head guy at Sega making all these decisions and at the same time i had come from this 2011 reality thus having all the gaming history knowledge i would of overruled the rest and choose to name the Saturn the Dreamcast. I don't care if they argued with me and tried to explain that they wanted to name their system after planets i would of stood firm and convinced them in seeing the beauty of the name Dreamcast and would have to just make up the fact that i came up with the name after having a good Sega dream . The Saturn was not a popular name with the gaming masses and in naming the Saturn Dreamcast it would of then allowed me to tell Sega to name their 128 bit successor the Dreamcast 2 when it was time to launch it. Dreamcast Bomberman anyone!
Other little silly obsessive things of mine i would of done was made the Dreamcast (formerly Saturn) white with blue power/reset/open buttons in all territories and on the disk lid i would of had the SEGA writing on the top part of the lid in colour (blue) and the Dreamcast writing where the Sega Saturn writing was which was on the lower part of the lid and had the swirl blue in all territories. I'm aware it was Orange in Japan for luck reasons but i would of quickly overruled that aswel and said ''sorry we don't need luck we are skillful and blue must represent the Sega brand always and worldwide (just like red is associated with Nintendo and Green is associated with Xbox). It would just be my way of making Sega's machines stylish and aesthetically attractive/pleasing in its own unique way which we all know works.
As a History Graduate skimming a few lines this reads like terrible Fan-fiction rather than being grounded in any logical and possible outcome of Historical precedant or possible plausable alternative decisions by big-wigs at Sega. All I can say is...