The reason for the $699 MSRP on the 3DO was because Hawkins wanted to keep royalty prices low on the software, so he had to make up for it by charging more for the console

and yeah I think people were done with Sega by the time the Saturn rolled around. People felt duped with all the dumb add-ons and then the surprise early 1995 (May?) launch. I think people saw Sony as a reputable company with good business sense