Sudden question, but is the model 3DO was trying to push
Absolutely not.
Nintendo priced their consoles for tiny profit launch outside black swan events and profitable basically instantly if successful. The GameCube $99 was IIRC the first time a Nintendo console was ever sold below cost, and even then not for that long really.
Meanwhile Sony sold their consoles well below cost, using eventual royalties on games to cover it (versus pure profit Nintendo) but for launch expenses simply they were a way bigger corporation.
Remember in that era the CD drive was $50 bucks, only reason Nintendo could compete on price with Sony while still making money per console.
Even if 3DO was a year later and so on par with PS/SS the companies making the hardware need to turn a real profit, not Nintendo couple-twenty at launch marginal we won’t lose money profit.
You go into the store. PlayStation has the most games and is the same price as N64. Saturn by now same price (bleeding Sega badly) as well but not so many games. Then there’s 3DO for a hundred bucks more with less games than the Saturn.
You just can’t make real money on the hardware against competition willing to go to one dollar or negative hundred dollars profit—especially when they have the hit games and you don’t.
If 3DO was structured so royalties from third party games were divided between hardware makers based on hardware sales… maybe? You’d force the companies to compete and reward them for selling more games which means lower prices, but that’s just OTL except with multiple companies working together as one group versus single corporation competitor.