The PCE was a success in JAPAN, because of the types of games you don't like that the PC-FX library is full of.
This just isn't true. If you look at the existence of the PCE as a whole, it started out hot and then lost mainstream appeal as time went on. Digital Comics didn't really take over until well into the Super Famicom era when the PCE was basically f*cked sales-wise. The PCE just got more ota-focused in order to keep existing. This is a good strategy at the end of a system's life, but no way to launch a new one.
Without question the reason the FX was designed the way it was is because they were designing a sequel to the PCE as it existed in 1994...but by that time it had basically become an overpriced digital comic machine for otaku shut-ins who wish girls had dicks so they could more easily relate. This was NEC just being stupid and, from what I can tell, operating more or less on their own. Hudson did release FIVE different full-on Bomberman games for SFC after all, as well as some Momotaro stuff and even Tengai Makyo Zero and didn't do much of anything for the FX. I like Yuna, but it wasn't what made the PCE and it wasn't going to propel a new machine into the future.
I like digital comics, btw, so don't take this so personally. I've cleared Sakura Wars 1-4 at least a half dozen times each, and I've beaten Yuna 1&2 and Tokimeki Memorial about as many times. I'm just saying that the Playstation and Saturn can and DID do everything the FX did, but they actually had Virtua Fighter and Ridge Racer and Panzer Dragoon and Street Fighter and KOF and shit like that. The FX just...didn't. While the library isn't exactly low quality, its INCREDIBLY inbred at the near total expense of any genre other than "wank". This is why it totally f*cking tanked and was marked down 10,000 yen almost overnight when the Playstation was still sometimes hard to find at any price.
When people think PCE they think:
Shooters (there is one on FX, and its not really so awesome)
Platformers (none on FX)
Bomberman (WTF, are these so hard to make? Hudson even make Mega Bomberman for MD and f*cking nobody bought that)
Strategy (Power Dolls is...OK, I guess, but why did Yuna 3 go to Saturn!?)
RPGs (these certainly do exist on PCE, but most are rather lightweight and uninspired. Most. Like high res PCE games, nice, but not exactly FFIV, DQ V, Romancing Saga, Chrono Trigger type stuff)
Digital Comics (even these, IMO, lack the originality of the PCE stuff)
Where is Devil's Crush, Ys, Castlevania, Gate of Thunder? f*ck, even Wonder Momo. How about the boring stuff that people forget even though it moves copies like Momotaro Dentetsu, horse racing sims, arcade ports and licensed sports games? There ain't jack shit.
This is why I said "its not about the language". It flopped in a place where the language was not an issue.
Also, the crack about pedophilia just being a cultural difference between the two countries is f*cking bullshit. Most Japanese think that shit is creepy as hell too, even if it is a lot more tolerated there, and its insulting to well adjusted Japanese to insinuate that jerking off to pictures of children is just another part of being Japanese like beaf bowls and kei cars. I'm not saying that the US doesn't have all sorts of f*cked up shit (its way more f*cked up, honestly. Wolf Creak? Law and Order SVU? All those fps arab killer games?) but it doesn't make masturbating to pictures of tied up 12 year olds whimpering any less FUKT than it is.