You're all over the place here. The Master System was Sega's competitor to the NES. The 32X wasn't even a console.
There was two full years of competition between the genesis and the NES before Nintendo caught up and made the SNES.
Like I said graphically Nintendo has always been playing catch up with Sega. They just marketed themselves better in NA and held the market share here until Sony released the PS, which they were supposed to build in conjunction with sega(another one of segas dumb decisions that put them out of the console business)
The Genesis did out sell the Famicom(Japan version NES) in Japan and some markets but not in the US.
Nintendo didn’t come out with the n64 until 1996, 2 full years after the 32x and saturn releases. And two years after PlayStation release.
And 3 full years after the Atari Jaguar (which was 64bit)
And
The n64 was the first time Nintendo had ever been graphically superior to Sega on a new launch, they were always playing catch up the whole time.
They were never the leader in the technology market, and finally fell too far behind and stopped trying to compete in home consoles head to head with Sony and Microsoft.
And now focus on gimic style things like wii and handhelds.
They had a great run, being the top seller for a very long time in video game history, with marketing and pricing strategy and winning out over superior tech consoles.