Launching a console 5-6 years after the others with similar horsepower is just stupid to begin with.
Yes, it paid off for the Wii but that was a once-in-every-20-years type miracle gamble.
Would you have bought a Playstation in 1995 if it had just SNES level graphics and Sony's sales pitch was "look! For only $300 you can play SNES hits like Street Fighter II and Castlevania IV just with the novelty of a different logo on your game box!".
Uh ... no. That prospect doesn't excite anyone.