The key to being the superior console:

1. Have a high number of available games (no matter the quality).
2. Have at least a few "must play" games.
3. Have moderately competitive hardware.
4. Be competitively priced.

Just look at the history of every console.
-SMS has better graphics, but a small amount of games unlike NES.
-Both the Genesis and SNES had boat-loads of games, and thus could compete.
-Neo Geo had superior graphics, great games, and was priced entirely too high ($650 in 1991).
-N64 attempted the strategy of having only good games and couldn't compete with playstation's endless amount of titles. N64 had far superior graphics. Even if it could have had FMV, it wouldn't have survived.
-GC shouldn't have survived, but carved itself a niche and somehow survived against PS2 & XBOX, who both had numerous titles.