I remember hearing a good quote along the lines of 'Peripherals do not sell consoles. By their very nature their sales market is pre-existing console owners."

Plus Yosuke Okunari also said "Sega had devoted much of its game development capabilities to the 32X (and much of its hardware stock, since the 32X used the same chip as the Saturn) during the 1994 year-end sales season." Which ruined Sega's capacity to support manufacturing and game development of the Saturn.