I'm so glad to see some of the old Japanese staff hit back at some of the crap thrown at them by a few ex-Sega America staff and lying bastards like Tom Kalinske, it's a refreshing change.
I do think mind, that Naka-san may be telling white lies, in some of his answers.
Naka-san was part of the DC committee sector inside SEGA Japan, who would have a say on what games would get the green light or be cancelled, the world over. Naka wouldn't have any say of what staff SEGA America could hire or fire, so we know it's total bull crap over Giest Force and how Naka-san wanted staff.
I'm sure almost anything Sonic, had to go through Naka-san in the 90's; Yu Suzuki/AM2 had to ask Naka-san for permission to use Sonic, in Sonic Fighters, I would guess Sonic X would have needed to go through Naka/Sonic Team to be approved, so he would have been aware of the project. I thought Ofer Alon’s Boss engine was 100% Assemble, because it was the one part of the project that was 100% built for the Saturn?. There's been a few times over the years that a game needed to make a complete switch to a totally different engine (Daikatana) so I guess it would have been possible and I seem to remember, the late Bernie Stolar also confirming, that he made a request to use the NiGHTS tools and had to tell the team they couldn't use them
Whatever the case, no way should a (so-called) elite In-House team need to look to use an outside engine after 2 years of development and it wasn't like SEGA Japan In-House teams, ever shared their tech with each other, never mind an outside western division. Sonic X was a mess of all SOA making and it's far too easy to blame Naka and SOJ. Sonic X was a project that spanned 2 years, 4 different systems and where at one point you had 2 different lines of the same team, working on different parts with 2 completely different engines, A complete mess from start to finish and despite all that and after 2 years. I don't think not a single stage, was ever playable from start to finish with all correct enemy placements Ect.
Like almost anything SEGA America, in the 32-bit era, It was badly planned and totally mismanaged. Soinc X was cancelled because the game was going to be crap at the end of the day and all the blame should be laid on SEGA America. Sonic should never have been given to them to cock up. Overlooking SEGA Japan should have demanded and made sure the Sonic Team itself, made one of the most important Sonic games (to sell its 32-bit system) SOJ would have been better off giving Sonic X to Realtime Associates (given Bug had a nice engine and was delivered on time) or Travellers Tails, rather than STI to totally cock up given they just simply weren't up to 32-bit production. Their 32X version looks like something thrown together by an Amiga bedroom coder.
SEGA America was beyond hopless in the 32-bit era