I think its time of death was fine, just not the *way* it died (see below). I can't really see it going on much further into '97/98. I'm sure the licensing fee *was* cheap near the end, and that 3rd party companies *still* could have carried on with it as niche platform. But it just didn't really happen like that. Did NEC pull the plug on licenses altogether stopping this from happening? 1999 release of DotB was surprising though. Not sure what they were thinking.
What bothered me the most, is that it took quite some time for developers to put in some *real* production values into games (CD games that is). It seems to me that the system was living off the charm of the 8bit era transition - basic playing/looking games... but still fun. They were kind of late to change with the times. It seem like in 1992 with the release of the Duo, SCD, and GOT things were finally changing, and in 1993 with some other titles holding promise - that the system was finally gonna get some higher end production titles by 3rd party companies. But that really wasn't the case. Companies (mostly 3D party) were still putting out minimal effort in animation/graphics/layout in general. As if there wasn't really a drive to compete on the platform, to raise the bar so to speak. Not that many of the games were bad mind you, they just weren't top tier or close to it - nicely polished like on the competitive systems. I mean, knowing what the PCE was capable of from early on. Kinda begs the question of what was going on. At least to me. There's no FF4 or FF6 on the PCE CD at the time or *platformers* that were up to snuff. You don't need scaling/rotation/transparency or even massive parallax to make some really great games or platformers. There's no excuse for that. Or ChronoTrigger or Super Mario RPG, DKC (even if I don't care for the game) etc of the later/last generation of games. Where was a badass Super PC-Genjin RPG for SCD? Some games came close (in one or two genres and that was near the end), but most didn't even come close to that level of production value IMO. And this, coming from a CD gaming machine - not some cart restricted system.
The SCD upgrade and the Duo was supposed to be thee next stage of the system software development. The next level. Time to get serious. To bring it to the next level with the other systems. To be on par in *all* genres (IMO). But it ended up being a mix bag. ACD appeared to be the fix for this. Finally - now we are getting somewhere, but it ended up just being a teaser. The ACD bi-compatible games barely take any noticeable advantage of the card. Some reduced load times? Big deal. Where was the additional animation, samples, unique tiles/upgraded graphics for these bi-compatible games? No where. The ACD only games? Aside from strider, which really isn't an ACD game at all but an old SCD project brought back from the dead to be released on the ACD to remove load times, all the other ACD only games didn't disappoint from what I've played. The NeoGeo ports are fantastic. Sapphire was great, though I'm not a fan of *all* the graphic styles of the game, the game itself is of high production value. From the high frame rate animation (morphing/bosses/scaling/polygon motion/etc) to the action on screen, stage layout, FX, detail, etc. And 2 player co-op mode. (Sadly, the weapon SFX suck) With enough memory restriction/limitations removed and companies putting in great effort.
But then... some of those last *great* gems that came out in '95/96 (even earlier in late 94) *didn't* even bother to take advantage of the Arcade Card. That's the true shame of the end of the PCE's life. Not that it had so few titles near the end, but that ACD was just kinda forgotten. The ACD died before the PCE died. The ACD dream was dead. Dead before it was realized. And as consolation we were given a few parting gifts and gems (and mostly non ACD) as the PCE itself, without the might of the ACD to make it *really* shine, rapidly faded away in the background.. and then into nothingness.