Bubsy 3D gets a lot of hate. The graphics were awful even for the time; Super Mario 64 had launched 2 months earlier (September 29 vs November 25, 1996), and looks a whole generation newer, not to mention plays much better. But before Super Mario 64 came out, the writing was still on the wall as to what a 3D platformer would play like. If Bubsy 3D had come out JUST before Super Mario 64, it probably wouldn't have made a difference as SM64 launched in Japan 3 months before its US launch, not to mention the buzz which covered pretty well all of 1996. Bubsy 3D's graphics and gameplay could have easily remained largely the same on one of the "fake" 5th gen systems, especially the 3DO. The game looks and sounds okay for 3DO/32X/Jaguar standards, not surprising when you consider that the game started development on the 32X.

There are two things I think could have saved Bubsy 3D:

1- If the game stays in its current state as we know it, release in 1995 (or even 1994) for the 3DO or 32X. Development would have had to start earlier; the game could have been made as a direct sequel to Bubsy II (launched October 28, 1994). Accolade released Bubsy in Fractured Furry Tales for the Jaguar for their 1995 Bubsy release. If they'd skipped out on the Jag and instead used that time to develop Bubsy 3D as a direct sequel, it could have been released in 1995, hopefully ahead of the PS1 release. A Bubsy 3D released in mid 1995 would have been seen as more of an evolutionary step from 2D platformers to the good 3D platformers like SM64 and Crash Bandicoot (both launched in September 1996). Even then it wouldn't have been considered a triple-A title but at least it would have been competitive in the pre-PS1/Saturn 3D area. Obviously its success would have evaporated in '96 when Super Mario 64 and Crash Bandicoot launched but by then Accolade may have made enough money to make a proper 3D Bubsy game for a 1997 or 1998 release.

2- This is probably the better option. Bubsy 3D was obviously unfinished at release on November 25, 1996. As the development cycle went, there was no hope of making a good Bubsy 3D game for 1996. If we looked in the game databases and saw "Bubsy 3D (1997)" it would have probably been a much better game. The head developer of Bubsy 3D, Michael Berlyn, was very worried when he saw SM64 in a much more complete state than Bubsy 3D. Bubsy is a great character with lots of potential. Had the game spent another year in the oven, going for a late 1997 release, then it could have looked and played much better. I think a Bubsy 3D released in 1997 could have been a good, even great game.