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ultimately the bet on ubiquity over capability didn’t pay offBecause they didn't know where to go from there. Instead of capitalizing on their existing userbase by making better machines that were also compatible with the currently popular model, they alienated their fans by making incompatible or barely-improved crap that nobody asked for: the ZX Spectrum 128, with just slightly more memory and a music chip but still using horrible graphics and tape storage, the QL, the Commodore 128...
The masters of both Sinclair and Commodore were tone deaf suit-zombies with no clue about the zeitgeist, no idea what gamers, the majority of their users, really wanted. Most of them were people who couldn't afford to run multiple computers (only having 1 TV or computer desk to spare) or part with their existing software library for minimal benefits.
On the other hand you had consoles like the NES and SNES, which offered enough new features and came after a long enough time for people to not mind the incompatibility.