Actually there's a side of 2d that AGA completely blitzed the megadrive/mega cd and that's bitmap handling. For pure arcade style gaming the megadrive is easier to get good results with, but that doesnt mean the amiga isnt capable of it too as was occasionally demonstrated (albiet too infrequently). You cant compare based soley on paper type specs, anyone who knows the amiga hardware knows that what it's capable of isnt reflected on paper. In the case of the cd32 I do agree though. An additional meg fast ram wouldve been a much better idea than akiko. The extra speed added via fast ram wouldve done just as good a job in reagrds to 3d, but it could also be used elsewhere as well and benefitted the system.
I totally agree that in the right hands the Amiga was a powerful machine, look at Shadow of the Beast on every other format for a good example of when a game is designed for Amiga it is graphically at the top of the pile (and sonically too thanks to David Whittaker's tunes).
@Tension, they probably should have designed it from scratch with 0.5mb Fast and 1.5mb chip anyway really. Problem was if people were just going to dump A1200 game code + CD soundtrack out there then it is no advantage anyway with examples like Alien Breed 3D not using AKIKO at all and just using A1200 code.
The sad thing is there was a machine in development, similar in design/form factor to the A3000 series with a 28mhz 020, 2mb Chip+2mb fast, CD-Rom, Akiko, and in a price between A4000/030 and A1200 (didn't have zorro slots but who cares) and this machine not the CD32 is what they should have pushed for.
The console market takes no prisoners really, silly little mistakes are magnified for you a million fold by the big players, who know exactly what people want usually. CDTV and C64GS should have been warnings not to develop the CD32, it did some things well but some things terribly badly. Atari made the same mistake too, starving the Falcon dev team to get the badly designed Jaguar console out the door to 'save them' too

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The A1200 was being sold for what £299 or less for a basic package by CD32 time? Surely the thing to do was put a CD-ROM device packaged with an A1200 with 2mb fast ram after C= doing an exclusive deal and launch it for £450? The cheapest 16/25mhz 386 Multimedia system was around £800 with CD and sound card at the time wasn't it still?
It's a good thing there's nothing left to talk about Coldfire upgrades for classic Amigas really as the thread would be long since dead haha
edit: I should point out that personally I think the problem was more to do with how Ocean/US Gold fleeced us with badly programmed games and ST port-overs for years and years. In Japan lazy greedy little software house's are not in their culture and they do things as well as they can so the SNES and Megadrive had an instant advantage from a coding point of view as they actually bothered to do it.