NiGHTS is the character that killed 3DO.

By 1996 the Saturn was obviously out and floundering. “Sega kids” were burned-out on years of short-lived gimmicks. “Nintendo kids” only saw three games come out in any given month, but invariably one of them awesome. But anyone who took a chance on Sony was spoiled for choice. Really, the PSX’s design was such an effective abuse of simple gimmicks, you’d think they were the first to deliver games in color. Suffice it to say Sega was not having a good time.

3DO asked them to drop the Saturn and join the hardware manufacturer alliance for their new standard of video games - the M2. They could keep making great first-party games without begging for third-party support. Sega almost did this. They were in talks with Panasonic for months. This was all kept very quiet, at the time, because the mere suggestion would kill demand for the Saturn. They still pursued it. It nearly happened. But allegedly… during one of the final meetings before it all fell apart… a bunch of Sega executives showed up in-person at 3DO headquarters. Nobody told the staff, of course. It was all hush-hush. So these random Japanese businessmen walk through the office around lunchtime, and briefly exchange some surprised glances with a bunch of American developers - who were crowded around a Saturn playing NiGHTS Into Dreams.

Sega said no.

Six years later they were a second party for Nintendo.