This game, if released, would have done for the Sega Saturn what Sonic Adventure did for the Dreamcast. Considering a lot more people bought the Saturn, of course. This was a totally 3D game for Sonic, most of the details are below, but after development problems hit at Sega HQ the company decided to can it and let Sonic 3D Blast take its place.
It's a great shame that Sega had problems with the making of this game, just take a peek at the screenshots, it looks awesome! The screenshot you can see here has Sonic running to the right, like your normal Sonic game, but this game had promised 3D levels, with Sonic being able to move in and out of the screen aswell as left and right. Whether or not this meant from the angle in the screenshot or from the third person view like Sonic Adventure has never been announced.
The level in the above shot looks mighty impressive, with mosaic walls and ceilings like a labyrinth. As well as beautifully created levels, we could have expected bonus rounds, just like old times. Sonic can - or rather, could - do some impressive moves such as the Spin Slash, shown above, which obviously looks like some form of an attack.
Other nifty moves and attacks Sonic would have been capable of would have been throwing rings, possibly at enemies, but it seems to make sense if you could. A rather odd move which hasn't been fully described yet was the Sonic Streak, and the Spin Dash would have returned. The truly mysterious thing is, Sega had kept some aspects of this game secret, and now it hasn't been released, it raises the question of what they may have been. Odd indeed...
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