Earlier quoted context omitted.
>I don't have any real evidence of this but my intuition is that Sony allowed their American arm more latitude and gave them more credibility with regard to designing the market strategy. In reality, the exact opposite happened. Ken Kutaragi (creator of the PlayStation) and Norio Ohga (then-president of Sony) were outraged that the Sony executives in America were not following their instructions, and they fired the v…
That's interesting. As I said I work with Sega so I didn't have any first-hand experience with Sony at that time. So given what you're saying here I'll amend my perspectives to say that Sony Japan just understood the American Market better than Sega Japan.
However, the 32X failed spectacularly, and that left Sega with nothing but the Saturn. Their response was to price-match the PlayStation, which seriously pushed them into the red. There wasn't much that could be done at that point.