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I think the CD32 was the best Commodore could pull off at that time. It is a miracle they managed to get out another product at all before they collapsed. The CD32 made a lot of sense even though it was rather weak as a console when compared to contemporary consoles. However, all shortcomings of the CD32 are really shortcomings of AGA (no 32 bit blitter, no extra audio channels through 32bit audio DMA, no chunky mode), Commodore had dropped the ball around 1990 when they neglected chipset development.
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