Of course it works, if you don't screw up. Let's analyze:
Atari 2600 - Won the gen hands down.
NES - Won hands down. Your data is wrong, it launched before the SMS.
Sega Genesis - Your sales data is incorrect, it was way closer. VGC has wrong data for Genesis. Lauching first allowed them to break Nintendo monopoly and end almost tied.
Sega Saturn - It only launched 4 months before the PS1, and it had a price of US$ 399 while PS1 was already announced at 299. Its launch was botched because they announced it as surprise on E3 and only in some retail stores. The ones that weren't included, like Walmart, were pissed off and even went as far as boycotting Sega consoles forever.
Sega Dreamcast - It launched mid gen, while the PS1 was still too strong. Sega didn't had money to keep it going.
XBOX 360 - It did put MS on the game and stole a lot of market from Sony. MS just didn't (and doesn't) have the brand strength to really win.
Wii U - Stupid controller, weak as hell, no 3rd party support, it just has to many issues to work.
So, launching early helps. PS1 used the time to beat N64, PS2 used it to beat competition, NES did and so on. But if you plan to release a crappy concept, it will fail no matter how many years of advantage you have.