That's true. It was powerful enough to have people argue about it being more or less powerful than the Model 3. Which was amazing for a console in 1998.
The Dreamcast was a huge step forward for home systems but the Naomi was a huge step backwards for arcades. They went from custom hardware that would make the most powerful PC look bad, to cheapo hardware based on a console you could have at home. That was the beginning of the end for arcades. The point of arcades was that you could see things you would't in your home so what's the point to leave the house and go to arcades if Crazy Taxi looks exactly the same as in arcades?
But that's another discussion.
It's an interesting situation regarding NAOMI, because yes it wasn't necessarily the most powerful arcade system at the time, but what were they supposed to do when the Model 3 turned out so expensive it costed them money? If anything the problems you feel were attributable to NAOMI probably started with Model 3; despite it being very powerful, operators just couldn't afford enough of the machines.
So they kind of were forced to go with NAOMI imho; it may not've been a massive leap from Model 3, but it was actually affordable for most arcade operators, too. And it did go on to be their most prolific arcade platform (between it and NAOMI 2), so I think it did at least some arcades well enough in revenue to keep supporting it. I honestly doubt the same would've happened if there was a Model 4 which yeah, maybe could've beaten the pants off of even OG Xbox for its time, but at what cost to operators?
I think another reason they decided against a Model 4 was because SEGA knew firsthand how having a marquee arcade board way more powerful than their home console would've made ports extremely difficult and probably generate bad perception for the home console. That's what happened with the Saturn port of Daytona USA, for instance. Even when they got a good port in CCE, it just visually came nowhere close to the Model 2 game. OTOH, PS1's port of Ridge Racer was virtually 1:1 with the arcade visually, and that didn't hurt its arcade performance nor the home version, so I don't know if NAOMI being only "comparable" to home consoles of the time was really what hurt arcades going forward.
Just a theory I've had for a while, but honestly I think it came down to super-expensive cabinets and lack of enough variety in gaming experiences that couldn't be had at the home. When you look at stuff like the DDR games, they EXPLODED in popularity and arcades had boon periods with them; those were helped by being games you couldn't really get the same experience of at home. Arcades needed more of that IMHO; looking at the FEC market now I actually see some really cool games conceptually you can't do at home, but a lot of them aren't tied to strong enough game design or IPs that will attract most console gamers to take a serious look. Whoever manages to put those two pieces together, honestly, they could bring arcade gaming back in a big way but that's just my optimism talking
With the EA stuff, you're 100% right. EA knew Sony was in no position to be bartered with that way. Funnily enough EA actually did this to SEGA with the MegaDrive, and that time it was over being able to manufacture their own cartridges. Both times they tried making super-favorable deals (for them) with SEGA when they were vulnerable, the only difference is SEGA actually made the MegaDrive a massive hit, which didn't come with the Dreamcast.
Maybe EA thought that would be the case once again and that's why they tried making that deal? We'll probably never know. But if people want to trace back EA's modern-day crooked business practices, well they always had some small tinges of it even back in the late '80s. But hey, that's the nature of business.
wait... didn't the PS2 have an official component cable and had like a 4 or 5 sports games that ran at 720p or 1080i? not necessarily native but scaled.
First time hearing about it. Hmm...I'll check into it, but I saw an Adam Korilik video going over PS2 and remember he might've tested image output with that cable but still being disappointed.
Or maybe it wasn't that cable, but an equivalent, more modern 3rd-party cable?