Much slower relative to 'what'?It is much slower at handling 2D this way, instead of having proper tilemaps.
PS1 had enough throughput for 18 full-screen layers, each rendered as 16x16 'tiles'. Irrespective of how that compares to something like Saturn (the max there is a bit harder to come by), it's a very large jump from previous gen hardware - which in the end - is 'the' point behind console generations. And in the end it's like shaders vs. fixed-function T&L debate - sure the latter could extract more performance from the same amount of chip-silicon - but in the end both are subject to bandwidth limitations, amount of available memory, clock-speeds they run at etc, and the extra silicon also gets you flexibility of covering many other use-cases. There's no absolute wins on either side, just a question of which trade-offs fit better at a given time.
PS1 was the first of its kind there - but the writing was on the wall for fixed-function 2d, and even N64 with relatively lower fillrate operated the same way.
Besides - if the only contention is 'was it fast enough' - that says little about things being less straightforward.
Eg. XBox was substantially faster than GC in every measurable way (irrespective of what fans on internet think) but that didn't make GC any less straightforward to develop for. In fact it was the easiest console of that gen to work with - by considerable margin.
I gotta wonder how much of that was just juggling memory limitations - which - while they do matter, aren't something PS1 had particularly added complexity around. Sure if you had unified 3 MB it would make things easier - but nothing really behaved that back then anyway, including Saturn.A good example is X-Men COTA, which made it early on Saturn but was pushed back to 1998 on PS1 by Probe, admitting it was challenging running the game on the console.
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