By the time of the Amiga 1200, Commodore was effectively already dead. It was a walking corpse.
AGA, the chipset in the A1200, was a stopgap produced because the originally intended graphic chipset, started in 1988, had been beleaguered by delay, in part because of severe underfunding of R&D, and they needed what was effectively a quick and dirty intermediate hack fast.
The "AAA" chipset that was intended to be the next generation, and which had e.g. chunky graphics modes and massively upgraded memory bandwidth and blitter speeds etc., and would've made all the difference for things like Doom, never made it out the door. The project was entirely cancelled in '93, as they concluded PC's would catch up to AAA by the time it'd be finished.
Instead, after AGA, Commodore tried one last ditch attempt and got frustratingly close to getting a massively upgraded design w/3D acceleration, up to 32 bit chunky modes and built to scale from being a standalone system (with an on-chipset PA-RISC CPU) to be licensed for consoles and set top boxes, to a chipset for an upgraded Amiga, with an option to also sell it as a high end graphics card.
[Of course, whether any of that would have saved Commodore was another matter - without a severe overhaul of corporate culture, it was just a question of time; Commodore had basically never, through it's entire existence, even as it rapidly grew in the 8-bit days, been more than one unresolved crisis away from collapse]