One of the most interesting things in this release IMO is the internal documents from Sega Channel management. For example, in this binder https://archive.gamehistory.org/item/ef6246e4-79be-4b02-b262... there's a bunch of research documents trying to figure out how to turn the service around after it began underperforming their expectations.
It seems like the main problem they ran into was that the service appealed mainly to the small minority of "heavy players" (who they defined as playing more than 14 hours per week). Their original projections were that they could target cable subscribers who own Genesis systems and play games more than 4 hours a week, but they found that most people who weren't gaming fanatics preferred to own a few games and rent games as needed rather than subscribe to Sega Channel.
The other big problem they ran into was parental resistance. A large amount of parents they talked to viewed Sega Channel as an "open tap" that would increase their child's time spent playing games. An ongoing subscription also was only a one-time "give" from the parent to the child, whereas buying/renting games was one "give" per occasion, which was more psychologically attractive to the parents.
In addition to rentals, around maybe 1994-1995, some stores (I don’t remember where) would have bargain bins or racks with some older games that were really inexpensive on CD-ROMs, and this continued for years. I remember snapping up some great old games this way.
Much earlier, as a kid I’d sometimes get games on cassette tapes in the bookstore and Radio Shack. Later it was great going to software stores that had games on 5 1/4” floppy diskettes in boxes. That stuff rocked.
I have had little interest in the games since then. Everything seems the same: mostly FPS / 3D crap. I don’t see any escape from this in the world building AI space either; they just added goggles.
It seems like the main problem they ran into was that the service appealed mainly to the small minority of "heavy players" (who they defined as playing more than 14 hours per week). Their original projections were that they could target cable subscribers who own Genesis systems and play games more than 4 hours a week, but they found that most people who weren't gaming fanatics preferred to own a few games and rent games as needed rather than subscribe to Sega Channel.
The other big problem they ran into was parental resistance. A large amount of parents they talked to viewed Sega Channel as an "open tap" that would increase their child's time spent playing games. An ongoing subscription also was only a one-time "give" from the parent to the child, whereas buying/renting games was one "give" per occasion, which was more psychologically attractive to the parents.