Disclaimer: The images on this page are from the "Electronics Boutique 1996 Spring CD". This was a promotional CD catalog given out at Electronics Boutique & Waldensoftware stores in early 1996. The images are only 256 color because that was the depth of the source files (keep in mind this was 1996).
The 3DO was basically dead at this point, its last release would come later in the year. We had a promo tape for the M2 that we played from time to time but didn't believe it would ever be released. I don't think it's accurate to say the Sony Playstation killed-off the 3DO. It was more like a lengthy suicide. It started with the insane sticker price, lack of a franchise game, weak 3rd party support, and goofy daisy-chain controller scheme. It ended by proclaiming itself obsolete before finishing the succeeding hardware.
DeathKeep is your basic dungeon-crawl game. It only advertises 25 levels which is less than the first AD&D branded dungeon crawler for the Intellivision (Treasure of Tarmin). OK, the graphics look better and stuff but it's still short on replay.
I recently posted a promo tape for Dragon Lore over here.
They could just never get the price low enough on this system. Even with the system near-death it was still going for $179.99. $99 would have been a reasonable price at the time. Maybe they thought cutting the price would finally be admitting defeat, maybe the thing just cost that much to produce? Whatever the case, nobody was buying the 3DO in 1996.