FMV can be used well, like in FF8's train hijacking scene cinematics and when they had you control Squall moving over the FMV background before smoothly transitioning into the in-engine stuff...but nobody knew how to yet. They should've left such experimentation to the 3DO developers, though.
The 32X should not have been made, simple as that. The Saturn should've had the DMA interrupt or whatever it's called so the CPUs could easily share data between them without s
The problem was with the culture at Sega in Japan, unfortunately. The success of the Genesis made them arrogant enough they forgot that Kalinske had already proven he knew what he was talking about regarding what would and wouldn't work, even though he's the one who was in charge of making it successful. I'll link the same thing I did in the "summer 1996" thread:
That console became the Sony Playstation.
Even before that, when Sega of America first saw the Saturn, it was a clearly overcomplicated, too-large board with too many chips that weren't designed to work together, so they decided to suggest a simpler alternative:
http://www.ign.com/articles/2009/04/...of-sega?page=6
In short: they reached the point of no return when they became jealous of SoA's success and forgot to listen to who they thought of as the "little gaijin people".