Earlier quoted context omitted.
I don't know anything about the game or how it failed, but what you describe reads like a classic caricature of an engineer's wet dream: lots of fancy tech that's fun to build but not very useful to the end user, while comparatively boring but useful features (autosave) gets passed over. Sure, management also failed (any failure is by definition a failure of management since they're supposed to be responsible for the…
Management letting engineers build whatever cool toys they want instead of features customers want and need sounds like it ought to be a textbook example of what not to do. Maybe you can't herd cats, but you can at least train them to use the litter box and not scratch your television.
Maxis in particular suffered from the problem of having a bright, famous designer who produced two major hits. This gave him license to make dozens of failures. Unfortunately, Maxis started "betting the farm" on his last couple creations, with budgets into the high tens of millions. You don't get to roll the dice many times at that price.