Embracer has really been a mess. Buying everyone up in the hopes the Saudis were definitely going to be on board with funding them probably didn’t help.
Just chucking everyone in a “Thing and friends” team probably isn’t helping matters either. Surely someone from the many dozens of development teams they have could have thought of better names.
The Saturn was bleeding them dry outside of Japan. They would have either died supporting the Saturn or trying to keep the Dreamcast relevant during the run of the PS2.
Sony was a force to be reckoned with and Sega just didn’t have the funds nor the presence to compete with them.