In the mid-90s, with the Saturn bombing and the video game landscape changing rapidly, Sega rolled the dice and made a few risky bets. One of those was, uh, sinking $3 million into the creation of an adult-oriented FMV game called Sacred Pools that was so bad it ended up being binned before it was ever released.
Source: Kotaku – Sega’s Lost ‘Erotic Thriller’ Has Been Found