The Amiga failed because Commodore bought the Amiga technology (they didn't create it) and then let most of the team go - so there was no decent follow-up. They just made money from it and put almost no money back into creating a worthy successor. The original Amiga team went on to create the Lynx, and then the 3DO.
So the next Amiga should have been Atari Lynx - but in computer form - with large no. sprites, sprite rotation/scaling and a blitter etc. But instead we got a linear update with AGA. AGA was enough of an upgrade to beat the 16 bit consoles but was in no way impressive enough for the mass-market to buy it.
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