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Chrkeller said:

Saturn did not have the lineup to even remotely challenge the n64 in the US. No way I'm buying that hypothesis.

Perhaps retail stock didn't help, but it bombed in the US because the lineup was meh (I am being nice) and the price was absurd.

The following notable games were released by December 1996 for Saturn in NA. AKA released before or within the N64's launch window of September 1996.

Daytona USA
Panzer Dragoon
Panzer Dragoon II
Virtua Fighter Remix
Shinobi Legions
Astal
Rayman
Dark Legend (Suiko Enbo in Japan)
Virtua Racing
Sega Rally Championship
Virtua Cop
Virtua Cop 2
Sega Rally 2
Layer Section
Mystaria
Street Fighter Alpha
Battle Arena Toshinden
Night Warrior's Darkstalker's Revenge
X-Men Children of the Atom
Guardian Heroes
Wipeout
In The Hunt
Shining Wisdom
Galaxy Fight
Legend of Oasis
Nights into Dreams
Fighting Vipers
Dragon Force
Street Fighter Alpha 2
Virtual On
Tomb Raider
Dark Savior
Powerslave

Meanwhile here's all the good N64 games by the end of 1997...

Super Mario 64
Wave Race 64
Killer Instinct Gold
Star Wars Shadows of the Empire
Mario Kart 64
Turok Dinosaur Hunter
Blast Corps
Starfox 64
Goldeneye
Duke Nukem 64
Diddy Kong Racing
WCW vs NWO

A lot of people don't realize that Saturn had a really good library early on. It bombed in sales in NA and then developers stopped making games for it.