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I agree with those mentioning the N64. People say "OMG Lair is coming out next month, PS3 sales will skyrocket!!!"
But with the N64 it was like BAM, here's Mario 64, BAM, here's Ocarina of Time, BAM here's Goldeneye, BAM, here's MarioKart, BAM, here's Banjo Kazooie.

And Nintendo had a huge fanbase, while the PSX was new to the game industry. I mean PSX started with no franchises and had zero fans up. It went up against the 20 million fans plus of Nintendo, and their massive first party lineup and the fact that 3rd parties were used to working with them in the past. Yet the N64 still failed.