I disagree. Sony took the entire planet by storm. They had a great product and tools, because they had the money to engineer those. And they bought the companies they needed, such as Psygnosis that build a ton of dev tools for the console.
And then, they were an absolute marketing juggernaut. They took total control over the discussion during that generation, with TV adds and reports in magazine that would simply totally work they way. Ridiculing 2D, having adds for games that were multiplatform but associate the games to PS anyway in the minds of people etc... They took control of all the mind-share.
They offered colossal worldwide marketing support to third parties who would only dream of this a couple years earlier. Even with a better product, SEGA would have not been able to compete on equals terms. The money simply wasn't there.
If anything, my opinion is that SEGA US are at fault for the most part. Everything they did around the Saturn was absolute shit. Launch, communication, ignoring Grandia, giving up on the support. The console was fine and could have delivered games easily for a couple more years. People tend to forget that the later releases had much improved over the 1995/1996 games. Everything was just better, you can see this in the latest SEGA Sports games for example, but not only.
But even with SEGA US offering proper support and believing in the console (to try to make for it in the next gen maybe), it would have ultimately fallen behind as Sony were at this point at the third party grocery store, getting whatever they wanted.