The Jag was an underpowered, overhyped console. 3rd party support was minimal at best as it was a bitch to program for. It also tried to keep cartridges in a CD generation, and unfortunately Atari didn't have Nintendo's pull.

Here's some more info from the UCD:

o it's 1992 and Atari is a shadow of their former selves. The last game system they released of any significance was the Lynx handheld, and despite being a better system overall than any of the competition it still failed to capture a leading share of the market. Atari must've felt they were in trouble and decided to get back into the console market. So they come up with the Jaguar, the world's first 64 bit system.

Well, maybe not. It ran with two 32 bit processors working in tandem, which technically made it a 64 bit system, but for some reason the game playing public at the time cared more about the processing power a machine could dish out and less about the actual games. Thus Sega (with the 32x) and 3DO capitalized on the apparent lie in Atari's "Do The Math" advertising campaign. For some reason this was like a big deal back in the day. In the stone age before the internet people had to do thier flame wars through letters written to video game magazines. Crack open an EGM from 1991 and read the letters collum to see what I'm talking about.

Anyway, To add insult to injury Atari's first generation software for this system didn't show much change from what was on the SNES and Genesis at the time. The graphics and sounds were only slightly improved, and mostly the game design was less than, shall we say, adequate (as with most 1st gen titles.) Things seemed to improve with the release of Alien vs. Predator and Tempest 2000. Atari promised a CD drive that came waaaaayy too late to save the system, in addition to a VR unit that never materialized. By the time the PS1 and Saturn came on the scene the Jaguar was already on the way out.