First, I ran the game on the Hatari emulator simulating an Atari Mega STE in 16 MHz mode, and it ran reasonably well. However, when I moved the game to my actual Atari Mega STE, it made no difference whether I had it set to 8 MHz or 16 MHz with cache enabled—the game performed exactly as if it were running at 8 MHz. Only the menu runs faster; the game itself does not.
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Thanks for reporting! I believe the MegaSTe emulation in Hatari is a little faster than the real hardware. Could you do a little benchmark for me? Rename CNC.TOS to CNC.TTP, then pass "-xyq" as parameters. After running a little demo, it shows some measured data. I'm mainly interested in FPS. You could try once with 8MHz and once with 16MHz+cache to see if there is really no diffeerence. A plain 8MHz Atari STe will get about 3.7fps in Hatari, a 16MHz Mega STe will get 5.6. Here are more benchmark results.