Don't forget 3D0 did excatly this in the early 1990s.
One problem with 3DO in battling the PC; is PC’s constantly adapting, evolving and assimilating nature. 1992 and beyond the rise PC gaming is accelerating e.g.
Wing Commander series, Doom, Duke Nukem 3D, Raise of Triads, X-Wing, Tie Fighter, TFX, F16 Falcon series, F15 Strike Engle III, Grand Prix 1 and 2, Indy Car series, Need for Speed series and 'etc'.
Then comes Pentium (P5) class games (1995 and beyond) e.g. Flight Unlimited (one of the first detailed texture mapped flight simulator for mainstream), Quake and ‘etc’.
It’s too bad that the initial PPC601’s processor power is wasted on emulating 68K transition phase. This transition phase practically killed off most 68K PC vendors.
While X86 world concentrate on just producing titles that maximizes the Pentium class processors.
Then comes 3DFX era i.e. kickstarts serious** 3D acceleration in games. Then this leads to the rise of NVIDIA and rebirth of ATI.
**Not like half hearted attempts from S3’s Virge ("The 3D decelerator" – ID (recalling)).
The doctrine that underpins PC's evolution is Moore’s law and HW cloning competition with "doing one better than the other guy" attitude e.g. AMD vs Intel or ATI vs NVIDIA.
Players; such as AMD, Intel, ATI, NVIDIA, Linux X86 (mostly for new markets) and Microsoft basically underpins the X86 homeworld.
ATI, NVIDIA and Microsoft underpins XNA initiative in their next battle with Sony.