Was Sony's lead more Luck-based?

Recently, a new Game Overthinker has questioned on how Sony may have got to the top of the hardware charts between 1994-2005. Many reasons why Sony dominated included this

1) During the SNES/Genesis era, game carts were still considered the media used for gaming systems while CDs started to take off for Computers

2) SEGA's attempt to enter the CD market was piss-poor at best.

3) Nintendo made a dick move with Sony on the CD-Rom system, switched over to Phillips, then abandonded it completely.

4) SEGA kept dropping the ball with the Saturn. Especially in America(In Japan, it still held out)

5) Nintendo stuck with Carts for the N64.

6) 3rd Parties left Nintendo and SEGA for Sony when the Playstation came out.

That, along with other events lead to the Playstation domination that started in the late 90s, a time when gaming meant huge epic adventures, gorgeous cut scenes, more M-rated titles, and bishounen mama's boys like Sephiroth. What lead to the PS2's epic domination may have included....

1) DVDs as the main source of media

2) Nintendo jumps onto disc media, but only propriatery media

3) Microsoft's X-Box project gets out of the door almost as bad as SEGA. Halo ironically, bailed them out

4) Games like GTA, Kingdom Hearts, Jak and Daxter, etc. Basically, Sony continuing to hold onto 3rd party presence.

So what happened? What turned a once-great hardware company into dead last for a majority of this generation? Why did Sony, who got back at Nintendo for ditching them on the CD-Rom, wound up getting clubbed by the same company?

You can watch the Overthinker clip here as MovieBob himself has a look into Sony's past, their success, and their failure.