I don't think it was the rep.
It may have been due to the cost of producing the console itself, the volume of units they produced, and the abundant piracy.
This is and no one wanted to develop for Sega because the previous CEO was literally handicapped.
That CEO went on to be the CEO of EA BTW.
During the Sega Genesis, they just made expensive nonsense to attach itself to the console for no good reason.
Then the "Sega Saturn wasn't sega's future" - That handicapped CEO
So, no one trusted Sega, and they collapsed.