It's kind of fuzzy, it was close to 15 years ago. I seem to recall it was that it got to the point where he could have had the decryption implemented without XORs, but even past getting to that point he still demanded to keep XORs in because he believed it would stop bootlegging. mamedev demanded he release the info to do it in a more proper way without XORs and he refused and quit mamedev.
Of course the irony is he then made phoenix sets (sold them on roms he burned/installed on PCBs himself under the agreement that the buyer not dump and release them, like that is realistic) which set off a tidal wave of CPS2 bootlegs.
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