I don't see how you think this is a "sabotage" unless you think that Sega expected it to fail and intentionally wasted money.
I always seen Shenmue Online as a ill-fated project since the beginning, so Sega probably knew or felt it too, that they were wasting money basically.
If I have to make a conspiracy theory, they probably gave Suzuki a "toy" (Shenmue Online) to make him quiet (back then in 2003-2004 Suzuki was still too powerful in the company for the new management of Sammy), that way he couldn't bother them with Shenmue 3 or other artistic, risky or arcade projects.
By the time Shenmue Online was cancelled, years passed, things changed, company changed and so they were able to force Suzuki in an sort of early retirement, removing one of the last encumbrance for the new Sega that Sammy wanted.
And put it on which console? S2 was an Xbox exclusive and it didn't sell well enough for a sequel. They could have developed it for PS2 but then they would have had to port S1 and 2 there (and there were also talks about the engine not being easily ported to PS2, not to mention the fact that Microsoft paid for the rights). It was an unfortunate mess but not one with an easy or clear answer.
Xbox was the candidate since MS was interested in the series initially, they also had the most powerful hardware, while PS2 required probably some big downgrade and a lot of rework to make shenmue work on that hardware, with possible worst results than dreamcast (just look at yakuza games on ps2).
Shenmue was not a success and you'll have to explain how you consider it such. I can't find any sales info on Sword of Vermillion but it's worth pointing out that Suzuki was only credited as a producer, not a designer or director. He also hasn't displayed much interest in creating console games outside of Shenmue so it may be a chicken/egg issue.
Shenmue sold extremely well, it was one of the DC best seller games, and with more than 1 million copies on a 10 million userbase, it's one of the best attach ratio, the only issue is that it didn't make a profit.
So for an analyst it's a commercial failure, but by Sega metrics, Shenmue surely helped to sell more consoles, so in a way it fulfilled its purpose, at least in part (it could've moved way more consoles).
Sword of Vermillion was big back then and also regarded as a success. Besides, Suzuki role as producer was never limited to just sign papers like a normal producer...
Leaving my personal opinions on the "realness" of the Shenmue game that Suzuki delivered aside:
1. Sega let him use the IP in order to get backing via Kickstarter, which is the entire reason the KS campaign was so successful.
2. The VF engine was completely outdated and very likely incompatible with UE4. Should they have provided him with a dev team and all the animation assets as well?
3. Suzuki had $7M on lock from KS, that he decided to pursue outside investors and balloon that figure into $20M is the main reason that S3 was not a financial success.
4. Suzuki started his own company, so the "newness" of the team was a foregone conclusion and how is this seen as a negative?
5. UE4 is one of the most commonly used game engines in the world. How is this a negative?
6. What "hate campaign"? There was endless hype when it was announced and it had the most successful videogame Kickstarter ever.
7. DS's marketing or lack thereof was tied to a budget that Suzuki (allegedly) blew past which is why Baisha had to be cut to get it out the door. Publishers do not pour endless funds into games, particularly ones that are as "niche" as S3.
1-Sega merit is to have offered the IP, but Shenmue should've been produced INSIDE Sega in the first place, not externally as a indie kickstarter, that's one of the biggest sega failures.
2-Sega simply didn't want to give the virtua fighter engine to an external developer.
An angine can be adaptet, look for example at Virtua Fighter 5 Ultimate that was recreated with Yakuza's Dragon engine, imagine with UE4 that has more standard and versatile tools...
3-20M is the grand total of money moved (epic deals included), Suzuki actually worked mainly with the budget we gave him with KS.
4-It's still an issue to work with new team and new people
VS
work in AM2 with the same people for like 20 years and Sega backing.
5-Suzuki said that he had to learn UE4 from scracth, and he wasn't that confortable with these kind of standard engines as he prefer his own custom engines
6-If you remember, as soon the KS opened, people started with false news like "why Suzuki wants our money if Sony is paying for development? He is a liar and a thief", and that sort of hate and misinformation continued and escalated during the years...
7-Deep Silver basically made 1 real trailer, maybe 2 (and from what I remember, 10-20 years ago a single trailer could cost around $5000, don't know current prices, but DS probably didn't spent anything on the marketing, so they are the last ones who can complains).
What would you consider a real fair chance on the market? Shenmue 3 was announced alongside the FF7 remake during E3, enjoyed the most successful video game Kickstarter ever, had a total budget of around $20M, a four-year development cycle, a release on every major platform, and was covered by every major gaming outlet and streamer when it released. That seems pretty freaking fair to me.
Fair chance?
A project where everything goes smooth from beginning to the end.
That wasn't a luxury for Shenmue 2 and 3, maybe Shenmue 1 was the most lucky and in fact it become a million seller.