Any ideas why Air Nights (Nights Into Dreams sequel) was cancelled?

[Released: 1998] Born out of Sega's darkest hour to decide whether the company stays in the hardware business. Even though it didn't officially last long in the US, it was continued selling in Japan and spawned some great 2D Japanese shooters.

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Any ideas why Air Nights (Nights Into Dreams sequel) was cancelled?

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My educated guess was that Sonic Team cancelled it to work on Phantasy Star Online since all of Sega's other teams were busy and they needed an online RPG for Dreamcast. Meaning Sonic Team had to make it and put Air Nights in the gutter considering that franchise didn't really catch on (wrongly so it's just Saturn was failure).

That's always been my ballpark, anyone heard or know anything different?
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