Once the console wars started in earnest, C= were simply too far behind the curve to do much. Gaming moved from the computer desk to the living room and Commodore's console efforts were too little, too late, too underpowered and too overpriced. Not to mention all the big titles were on the mainstream consoles and devs never quite took after the CDTV and CD32, games development wise - both the CDTV and CD32 were essentially non existent - market wise, over here in North America.
I saved my pennies way back when, being the good Amiga fanatic that I was and picked up a lightly used CDTV from a local fellow and never used it again once I got a SNES that I got for Xmas around the same time. The SNES (and Genesis) were half the price of the CD32 over here and CD32 (and CDTV before it) simply stood no chance. When every 13 year old kid had a SNES sitting in front of the TV, it was a hard sell to get people to buy an off brand, non mainstream console no matter how promising it was. The Commodore name meant nothing to a console buyer, while it meant a lot to us guys familiar with the brand from the computer sector.
The Amiga based consoles always had so much potential, but it never quite hit when it came time to get to bat and the home plate, sadly.