E.T. was acceptable because it was in the age where atari thought it coul just diarrhea out whatever game they wanted and it would be bought, there is literally no excuse for sonic '06
But here's the thing though, ET actually never sold enough units to make back the huge amount of money they sunk into it to pay for licensing. It didn't crash the western gaming market by only being bad, but by basically killing several million of atari's dollars.
Sonic 06 was bad, make no mistake. But it didn't destroy gaming in america for several years.