PS1's biggest problem aside from price, was that it didn't have any truly "MUST HAVE" games at launch, whereas N64 had Mario and Pilotwings (two very good early 3D games), and even Saturn had Daytona USA, Virtua Fighter, Panzer Dragoon, and neat little games like Bug and Clockwork Knight. PS1, by comparison, launched with games like Battle Arena Toshinden, ESPN Extreme Games and Street Fighter The Movie: The Game. It had a nice port of Rayman, but that had already been on Atari Jaguar, and it also came to Saturn and PC. The only REALLY good launch title PS1 had was Rider Racer, and even that wasn't exactly "MUST HAVE".
It wasn't until PS1 started getting games like Resident Evil, Tekken Final Fantasy VII, Symphony of the Night and Metal Gear, before the sales really started taking off. And the simple truth is, if Nintendo had merely decided to go with CD format instead of cartridge, most of those games likely would have been N64 titles instead. So PS1 definitely had fortune on it's side in that respect.
But yeah, Saturn and N64 both were FAR better buys out of the gate, and for a good while. PS1 took some time to build up steam, but thanks mostly to a growing library of exclusives and the fact that Sega shit the bed and decided to abandon Saturn too early, PS1 absolutely wound up dominating the gen, eventually.
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