Your point about Panzer Dragoon is just a little silly, Mario Bros is held up as classic, and genre defining game wasn't based on an Arcade game?. The fact was PD was made as console game as SEGA Japan spending the most money it had ever spend on a title be that in the Arcade or home. Many early PS and Saturn games could be finished in a day and it took until Resident Evil and the likes of Tomb Raider before games had real depth, it was how people knocked the systems early in and help up how much more depth was in Yoshi Island on the Snes . I remember one of the boys in the import shop almost finishing Jumping Flash on his 1st go. It didn't matter as we were all blown away with the gfx and it was giving you the player an experience well beyond what the 16-bit games could, and that was true for Panzer Dragoon.
Mario Bros. may've been based on an arcade game and had strong arcade game design influences, but Nintendo added a TON of content and structure to the game to leverage it being a home release. Games like Panzer Dragoon were already more limited than some of the 2D platformers gens prior due to fixed scroll speeds and being a rail shooter, but SEGA also lacked the foresight to remember this was a game for home consoles. There was very little in the way of content for Panzer Dragoon; with an aesthetic like the one it had, they could've leaned into RPG elements much earlier than Saga. There could've been a more robust Story Mode and means of upgrading the dragoon, or selecting from different dragoon types that influenced playstyle and even what alternate levels you could've accessed.
That type of stuff was not a big ask in 1995, even for 3D games, but SEGA didn't have the foresight. Team Andromeda were a new studio at the time so I understand that factor, but had SEGA been more considerate they could've supplemented development with another studio to build out content for the game. Also you can't really single out Jumping Flash as something indicative of most of the PlayStation's early exclusives, when they had games like King's Field around also which were both substantive in content and innovative in their application of RPG action in 3D spaces. Or titles like Crime Crackers for that matter.
Games like Resident Evil, I'd argue are actually very arcade-like in design ideology, since they're designed in a way you can master their mechanics to get very short playtimes if you know what you are doing. At that point, the story can be optional. However, they did a great job of interweaving atmosphere, story, and substantive content into a cohesive experience that felt more cinematic for the time. They did what games like Panzer Dragoon could've and should've done prior, considering Panzer Dragoon itself has a very artistic/cinematic flair to its atmosphere.
You focus way too much on the day 1 lineup.
PS2 sold in droves due to the below.
People expected plenty of games of this calibre based on their experience from PS1, and their purchase was validated in little under a year.
TBF, in 2000, no PS2 did not sell primarily due to these games. In Japan most early adopters were in for DVD, and in the US & Europe it was a mix of that and the early software. Tho I'm sure many knew these games were coming due to magazines and press coverage leading up to their launch, for sure.
After these games released tho, yeah it was a wrap for everybody else that gen in terms of gunning for the #1 spot. Dreamcast died before these games actually released tho, so it's a bit hard to say if these specific games caused its death.
Quick look at what we got in PAL land from SEGA this "meh-ish" year lol :
Forgot Three Dirty Dwarves !
And this is not really extending to all the published games (Quake, Duke Nukem 3D, Bomberman, Jurassic Park etc...), and not even talking about the awesome third party games that were released this year (Hexen, Marvel Super Heroes, Wipeout 2097, Resident Evil, KOF95, Pandemonium, Worms...)
In the real world, 1997 was loaded with awesome games and it was impossible to keep up.
Anybody unhappy with 1997 on Saturn either hates video-games, or is pushing a narrative.
Eh, no not really. The problem with your list is it doesn't account for the games PlayStation had on store shelves during the exact same time frame. If the Saturn games you show here were up to helping the system stand out and do well on the market, then 1997 wouldn't have been remembered as something of a disaster in the West. Bernie Stolar's comments after that year's E3 wouldn't have caused such a massive fallout of 3P support for Saturn into the second half of that year and through all of '98 and '99.
This isn't even me saying the Saturn games are bad. Shining the Holy Arc, Virtual On, Enemy Zero...they are legit great games. As are many of the others. But nothing about them stood out to appeal to the masses over what PlayStation and Nintendo were offering in the exact same time frame. Who needed Sonic 3D Blast (a quick port because of Sonic Xtreme getting cancelled) and Sonic Jam (a collection of old MegaDrive games with a very small 3D bonus area) when you had Crash Bandicoot 2? Who needed Sonic R or gave a shit about it, when you had Diddy Kong Racing? Do you see where I'm getting at here?
Yes in hindsight that type of thing doesn't matter, but at the time, it was absolutely important and SEGA didn't have offerings that were strong enough or stood out enough, to take the spotlight away from games like Crash Bandicoot 2, Diddy Kong Racing, GoldenEye 007, Final Fantasy VII, Bloody Roar, Gran Turismo etc. That combined with poor marketing, were the Saturn's biggest problems during the gen in the West.
Even in Japan, sales basically collapsed in 1997 so many of the same problems I mentioned above for US & Europe apply to Japan as well.