Nintendo had a problem to solve back then, which was shovelware, so they incentivized fewer, higher-quality releases. Compared to today's market and the means we have to sift through shovelware, it was basically the equivalent of martial law to get the market on track. But for many years, competing consoles were just capable of dramatically different things. That tended to even out in the 6th gen, but even then, many devs would only release on PS2 because it cost too much money to make a game multiplatform, so you'd just target the one with the largest install base. Take a look at the 5th gen for how dramatically different the capabilities were between the Saturn, N64, and PlayStation; two of them were on CDs, one was on cartridges; Saturn sucked at 3D and pushed FMVs; PlayStation had a weird "Z-buffer" problem where vertices were really swimmy and shapes would wobble; N64 lacked the storage space to have many textures at all; draw distance and raw processing power varied wildly; on and on.