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A bunch of reasons:

1) Sony were big in electronics and the PS1 offered a CD player as well a console from a world class brand. Sony has the best TVs, Laptops, headphones and walkmen.

2) The PS1 hit kinda at the peak of the arcade scene where you had street Fighter, Tekken, Time Crisis etc and it offered the arcade magic at home from light gun games, racers, beat em ups and dance mat games.

3) it was cheap

4) it had better tech than the N64 and the Saturn couldn't compete with soul caliber, ridge Racer, time crisis etc. Whether it was due to being in direct competition with Namco or Sony. Sega got hit from all angles.

5) it was the first easy to play pirate games. I knew over a dozen people who had pirate games for it and it was so easy and risk free.