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New Cheat Code Discovered in Sega Saturn Doom After 27 Years
(www.retronews.com)
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I'm not sure I would call it "problems", but doing transparencies on the Saturn required leveraging VDP2 and most developers just didn't bother.
Yup. Sega had it figured out and enabled Fishbowl Head in Virtua Fighter Kids, but it was out of the reach of 3rd party developers.
Is that transparency? Looks like the same dithering/alternating empty pixels that all Saturn ports are plagued with.
Yea, that's specifically not transparency. Megaman X 4 had actual transparencies, which you can see here with the glass tube, next to a spotlight using the dithering method.
Oh, but it's what passes for transparency on the Saturn. :)