Commodore's big mistake was the CD32.
This product was not competitive in the game market, it does not fair well in comparison to true 32bit game consoles.
Actually Atari made the same mistake with the Jaguar...it was certainly not 64bit and also did not compete well with the 32bit platforms of the time.
The fact that Atari and Amiga were dueling in this stupid fest only helped them both fail slightly quicker.
my 2 cents