Yes, and that is also when the third parties started to have enough. They failed with the SNES, it got worse on the N64, and trickled down to the other systems. The Wii had third parties, but there was no quality control and the good companies were only there to cash in on the system. No one really cared. They are still just cashing in, like anyone would, but the games are actually good and there.
No, 3rd parties had alot of success on NES & SNES, this is a fact.
When the herd loses its way, the shepard must kill the bull that leads them astray.