I've worried that how Microsoft handled shoving themselves into the market caused a lot of damage all over the place in general. The razor model was typical for consoles, but this extreme forced drastically higher development costs seemingly quicker than they could have handled and just threw a lot of developers and publishers into disarray when trying to stay competitive. But I'm not sure if that was inevitable (learning to handle multiple cores for instance) or not.
Probably just as much on Crazy Ken though. He wanted to pull a Yamauchi combined with his own engineer wet dreams in making something that was a pain to develop for that'd also likely have been ostracizing to those who couldn't keep up, and in the end it was just a pain for everyone without a convenient, reasonably high end alternative that was actually popular in Japan like the PS1 itself was relative to the N64.