Soundwave said:
Improving doesn't necessarily guarantee better results either though. The Dreamcast improved on the Saturn in several ways (easy to program for, 3D Sonic from launch, great 1st year roster of games, etc.). The GameCube improved on the N64 in a lot of ways (easy to program for, optical disc format, third party games, Japanese RPGs, Resident Evil exclusivity, etc.).
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External factors have influence but the things you mentioned are required for sucess either way. It's sad to see those external factors limiting the sucess of consoles like GC, DC, XBOX and Wii U.