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The version of Sonic X-Treme we saw in advertisements was scrapped early in development. The slow and unsatisfactory progress in porting the PC engine code to the Sega Saturn caused arguments, and resulted in the executives intervening and bringing in a third party company, POV, to take over programming duties. From then on, three parties worked on the programming separately: one on the boss stages and two on the main game. On the original programmers' side, good progress was made. But POV had no such luck. Due to a poor presentation made by POV, the President of Sega Japan had already angrily left the building when the team of original main-game programmers arrived. In reaction to the poor presentation, the president demanded that the rest of the game be made like the boss engine, which caused further complications and ultimately the cancellation of the game.

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