Is there any retro consoles that you never lived up to their potential? where the games fell short of the hardware?.
Personally I feel that the NDS was under-utilized, as it was a fully 3d capable console, that was used mostly for 2d pixel art games, and platformers. When it was able to support full 3d platformers and even a fan remake of portal.
The Atari Lynx had the graphics to blow the Game Boy out of the water. Unfortunately most of the games sucked so it died quickly.