Mistakes include
Marketing
Price
Games
Time of release
The biggest problem with marketing came from the idea of someone trying to market it as CD 32 system when Playstation or Saturn was about to come out when it was no better than it is was overall when you could just wait a few months then buy Sega next console or Playstation or N64 for Nintendo. https://www.game24hours.com/2022/09/sega-history-with-success-and-failures.html
The price was a lot more than the price of Megadrive this alone makes it look way over priced.
The games were often very healthy rushed meaning the gameplay would be bad most of the time plus not a lot of gameplay in them all overall.
The games did have a lot of Potential but over most of them being rushed to sell to get them sold before Saturn came out this meant a lot of games could had gone from like Amazing Sonic games or very amazing like Megadrive games into like 32 bit system for example imagine Splatter house on Cd 32 that could had made the whole system something Sega could have kept working on for even like 5 years if they release a fun or amazing game it could have turned into a profit from them big time but they never took it to serious was the big problem with them overall.
A big problem a lot of people bought up was it was very hard to program games for it overall for example Wonder Dog to me looks no better graphic wise than Snes or Megadrive game looks overall and I think a lot of people would think by how it looks it was 16 bit not 32 bit as the CD claimed it would be a lot of the games look very low quality for modern times to me if you compare it to like Final Fantasy 7 the difference is giant when you compare it to like the CD system overall.
A lot of videogame firms did not want to release games for it since they all knew about Saturn or Playstation as such getting games made for them was better idea than hiring people to program for a system will be gone in the next months probably for why only a tiny amount of firms made games for the system which I felt was also big reason so many of the games sucked overall only 2 games out of 34 were any good which even Sega today will admit they regret making the system the American Chairman at the time admit it was stupid idea to release the Sega CD when even the main guy behind the company admits it’s a bad idea it does not sound good for a possible customer who bought it before but if you just want system as simply a collector item it could be pretty good overall but gameplay worst system they ever made by a large amount to me.
The last game they made which came in the Japanese language would be Shadowrun was release for both the SNES and Megadrive the same time so in a lot of ways it would make sense being on it but it is more less just like at best update version of it since overall it plays very similar to it and has more less exact same storyline as well but just with a slight improvement which is not much to me in all cases for how it looks or plays in are our thoughts.
The system would often overheat or smell which did not help for people using it long term for example if you played it for like 2 hours or more it would give of like burning smell which does show it was not made in a high quality way either which did not help overall it as like collector console as well to me.
When it advertisement was done in the past for Sega,Nintendo,Sony were all just months away from releasing three own 32 bit systems as well as such it made the idea of buying the product seem to most people kind of silly overall plus nothing was really being marked well since if you were like a Sega fanboy you would probably just wait for the Saturn and buy that instead of waste money on a system that they will probably not make many games for it anymore so buying it was for adults or parents was overall not something to many did plus the price of it did scare of a lot of people as well since the idea of addon costing more than Megadrive made it seem very overpriced if they cut the price a lot it could had being more popular and they spent more time on creating good quality games it could had ended up a well respected system possibly
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