When Phillips got the rights to do a few Zelda games they created
what are universally panned as the worst zelda games.
Honestly it just looks like Phillips had a taste for Zelda II and
a lot of Windows 3.1 Sierra games combined and just
went a bit too far with it, but I never played the
CDI ones, though I still have a slight yearning to as I've
seen footage of all the ridiculous goofy cutscenes, and some of
the sluggish looking gameplay, got to admit the soundtrack to the CDI games
actually isn't too bad imo, anyway for more info:
The infamous Phillip’s CD-i Zelda games have been remade and are available to download and play, for free, on the PC (and Linux) right now!
www.eteknix.com
Note to the OP: Familiar with the fact Nintendo's other rival Sony was going to do something
with Nintendo? Sony and Nintendo were originally going to be
partners.
en.wikipedia.org
As for Sega, yeah might have been a better move considering they do not make consoles anymore,
just games. Never was a huge Sega guy, I played some of the Sonic games and Ristar
at my cousins house as a kid and that was about it for sega.