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NeoGAFs Kent Brockman

Random: The Real Reason N64 Lost To PlayStation? Depressing Games And Lonely Players, Apparently
That's according to late Nintendo president Hiroshi Yamauchi, anyway

A lack of publisher support is just one of the reasons the N64 struggled in the face of the PlayStation, despite playing host to some of the best games of the generation in the form of Super Mario 64, Zelda: Ocarina of Time and GoldenEye 007. However, somewhat predictably, Nintendo's president of the time Hiroshi Yamauchi had a somewhat different opinion on why the console was bested by Sony's system. He was quoted at the time as saying the real reason the N64 failed is because Japanese gamers "[like] to be alone in their rooms and play depressing games."

Famously short-tempered and never one to mince his words, Yamauchi uttered that pearl of a soundbite around the same time he announced he would be retiring as president of Nintendo, a position he had occupied since 1949. He passed away in 2013, and it was only while we were flicking through a pile of old Gamers' Republic magazines from the dawn of the millennium that we were reminded of Yamauchi's amusingly negative assessment of the Japanese games industry.