Are forgetting this is 1993 were talking about not 1996?, Sega wanted It out to rival the PSone but knew they couldn't make 1x CPU & GPU with the power needed without waiting 2.5 years later. The N64 had ram latency issues & was capped to 4KB textures, The Saturn didn't have that issue.
This was the same era where PC games only used the CPU where video cards were seen as more of gimmick.
Well yes of course we are talking about 1993. Thats why Sega was trying to rival PS and not the N64 as you initially suggested. All hardware choices had their pros and cons but the Saturn was obviously the most convoluted and overall the most problematic one.
Sega of America and Sony were going to collaborate initially to make the console together. Rejected by Sega of Japan because according to Sega of Japan, what does Sony know about console hardware and games? Ironically that initial meeting with SoA gave Sony an idea of the future of gaming which SoA and Sony were aligned with. 3D was the future. Virtua Fighter 1 indicated that.
Then Sega of America went to SGI, made a hardware prototype, rejected by Sega of Japan because it wasnt good enough. Then SGI fixed the problems, went back to Sega of Japan, again rejected because of an underestimating attitude towards Kalinske, Sega of America in general and against other companies.
SGI already made R&D expenses and were like "what are we gonna do with this now". Kalinske since was a good partner and managed relationships better than SoJ, told them there are other companies that might be interested in that. They went to Nintendo.
That R&D by SGI was the backbone of what ended up in the N64. Of course revisions were made based on costs and what Nintendo wanted. But that hardware was more straightforward and according to rumors, easier to make games on and probably more competitive with the PS.
Basically the Saturn hardware was the result of Sega of Japan underestimating competition first, which caught them off guard with the PS capabilities, and later it was the arrogance and resentful competitive culture towards their western partner Sega of America.
Surely some things the Saturn did a bit better. But in general it was a pain in the ass and struggled to put out competitive results. The Panzer Dragoon creators at GDC said that when they saw the initial revelation of the PS hardware running Ridge Racer they felt that they were screwed. Then when they worked on the final Sega Saturn hardware to make the Panzer Dragoon games, although their games were some of the best showcases of the hardware, often used by the biggest Saturn fans as examples of hardware superiority, they said that they would never wish to work on such a messy hardware ever again. They felt that the Sega Saturn was not good hardware.
The design of the games that shined on the hardware were extremely limited to the specific hardware challenges and capabilities. Much more so than the top games did on PS and the N64.
For example you would see less texture warping on the Saturn in relation to the PS but still was there, while framerates were generally much worse, transparencies were inconsistent, color palette was not clean, sound was worse because of lack of hardware compression etc.
It was simply put, a mess. Much more messy than PS2 and PS3 ever were.
But I surely give a hats off to the amazing Quake on the Sega Saturn. That was a miracle. One of the most impressive showcases of the generation. It surely makes us wonder what the Saturn could do with smart thinking. I am also very curious how a Quake game would have looked on the PS1 if it was tailored to the PS1 hardware and not a straight port running off the CPU like the did with Duke Nukem