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Jonah

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Amor fati

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The Sega "64X" almost happened. It would've been a Saturn upgrade cartridge/card for either the cartridge slot or the port at the back. The upgrade was supposed to contain a Lockheed-Martin Real3D GPU and possibly a PowerPC CPU, giving the Saturn better-than-MODEL 2-arcade capabilities, even a decent fraction of Model-3, perhaps as much as 50%. This upgrade would've been released in either 1996 or 1997. Its main competitor in terms of 3D performance would've been the unreleased 3DO M2 console and the 3DFX Voodoo1 cards for PC, but the upgraded Saturn would've surpassed both.

From Feb 1997 EGM:
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Next Generation had an article in 1995 about "Saturn 2" that was basicly the same thing. Although at the time it was going to be *either* an upgrade for Saturn *or* a new console, not both.
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Amor fati

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As soon as any console is launched, work is usually underway on a replacement but the Saturn's troubles gave this process an unusual urgency for Sega. By 1995, rumours surfaced that US defence contractors Lockheed Martin Corp. were already deep into the development of a replacement, possibly even with a view to releasing it as a Saturn upgrade. There were even claims that during Saturn's pre-launch panic a group of managers argued the machine should simply be scrapped in favour of an all-new LMC design.

Sega originally entered into partnership with LMC to solve problems with its Model 2 coin-op board, however by 1995 the relationship had soured somewhat with the Model 3 board suffering massive delays.

If Sega had used Lockheed-Martin's Real3D technology to upgrade the Saturn (or replace it) these are the kind of real-time visuals that would've been possible:
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A Sega Saturn version of Resident Evil 2 was at one point planned (complete with extras) and in early 1997, Bernie Stolar suggested it would arrive a week after the PlayStation version though it ultimately failed to materialise. It was at one stage rumoured to made use of the 4MB Extended RAM Cartridge.

Quote from Japanese article canceling RE2
TOKYO - Capcom announced that it has officially canceled Bio Hazard 2 for the Saturn. Shinji Mikami, the game's producer, made a statement regarding its cancellation:

"We sincerely apologize to the people who anticipated Bio Hazard 2 for Saturn. We were developing Bio Hazard 2 for Saturn, but found out that it's difficult to achieve the same level of quality on the Saturn that the PlayStation version had. So we decided to change the platform (from Saturn) to Dreamcast, and develop a new game called Bio Hazard Code: Veronica for the system. We are working like mad to make the game better than the PlayStation version visually, on the scenario side, and the overall game itself. Thanks for your understanding."
 
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