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According to Bug! executive producer David Warhol, developer Realtime Associates was at one point contracted by Sega of America to create a Sonic the Hedgehog game as a launch title for the Sega Saturn. However, shortly after Realtime Associates agreed on a contract, Sega of Japan denied them permission to use the IP. Realtime Associates instead continued with the project as a new IP, Bug!, based on a cancelled project for the Sega Genesis.
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