The Sega Master System was designed prior to 1985 and isn't very good, go figure.
the NES was far more popular and got more than double the number of titles release than did the SMS, no surprise there.
the NES definitely wins in the software arena, not only on amount of games released, but in the RPG and Strategy genres in particular, the SMS literally got Phantasy Star (admittedly one of the best of the generation), Ys and Ultima IV...along with Populus for 'strategy' and very little else, also King's Quest: Quest for the Crown, if you want to press the point (though, more adventure than actual RPG, but worth a mention - NES got Kings Quest V)
It does appear that a huge proportion of NES games (nearly half?) weren't released in PAL markets, while a mere 35 (5%) PAL games were not released to NTSC markets, which is also presumably why I could never find Asterix or the Smurfs, 2 of my all-time favorite 'IP's. (meanwhile, I believe both got NA releases on the SMS), and as pointed out by Jameson, the opposite appears to be true of the SMS, with virtually 1/2 of all games not recieving a North American/NTSC release, and very, very few NA/NTSC exclusives. (King's Quest: Quest for the Crown, Montezuma's Revenge and Where in the World is Carmen Sandiego?)
the SMS version of Montezuma's Revenge might just be the best port of any system, having revamped graphics, sound and levels.
the SMS has the usual number of largely satisfactory Shooters, Platformers and Arcade conversions...
the SMS feels a bit lacking in 'licensed' titles, with Sega relying a lot on their own properties, many of the Sega titles are very good however (ie: the Sonic games)
If you like RPG and/or Strategy games, you are quite simply going to prefer the NES. One of the biggest appeals of the NES for me was the fact that it had all the Koei games, Uncharted Waters, Nobunaga's Ambition and Genghis Khan are all on my list as among the best games I've ever played. (I would have loved it if Civilization 1 had made it's way to the NES)
there's no point comparing the PC Engine/TurboGrafx16, as it is not considered part of the 3rd gen of consoles, but part of the 4th along with the SNES and Sega Genesis, it is neither a true 8-bit, nor 16-bit, but a hybrid 8/16 (8-bit cpu/16-bit graphics system) and imo manages (just) to keep up with it's younger, but more powerful cousins, despite obvious limitations (HuCards appear to top out at 1MB/8Mbit, whereas SNES and Genesis have many carts that are 2MB/16Mbit and even a few at 3MB/24Mbit, allowing for more 'robust' games)...one of the TG16s games, Military Madness still remains as one of my all-time favorites.
Some of the TurboCD games, particularly the RPGs blow the SNES and Genesis out of the water. (and I AM including SegaCDs in that

)
Cosmic Fantasy 2, Dragon Slayer: The Legend of Heroes, Ys: Book I & II, Ys III: Wanders from Ys are all fantastic.
RPGs on HuCard were very limited, Double Dungeons and a few Action-RPGs.
Several of the sports games included a Dragon Warrior/Final Fantasy type RPG mode whereby you defeated your opponent at the sport, rather than in battle, to earn money for upgrades. (Final Lap Twin being my favorite)
other systems of the 3rd gen are far more lacking:
the Atari 7800 only got 59 releases, though it's main appeal was the fact it would also play 99% of the 2600 games out there, which included 565 official games, but has virtually nothing for RPG/Strategy (ie: more complicated) games.
the Commodore 64GS, Commodores attempt to enter the console market was a failure, while it claimed to be able to utilize the existing library of C64 carts, many of them were unplayable, as the system didn't have a keyboard, and as such was unable to start, and in most cases select game options for the multitude of games that required f-key and/or space bar or return key presses.
I have no experience with the Atari XEGS, but I understand that it played the existing catalogue of 400/800 games as well as 32 releases of it's own, and was at
least better than the 64GS
the Action Max and View-Master Interactive Vision systems required a VCR, and I don't recall them being very good, and never came across anyone who owned one for that matter...the View-Master had a mere handful (7 actually) of titles, all of which were Sesame Street, Muppet and 1 Disney Cartoon Arcade title. the Action Max only had 5 VHS titles released.
Philips Videopac+ G7400, successor to the Odyssey2, was limited to Europe and would have also become the Odyssey3 had it sold better there. it also supported O2 games as well as it's own, there appear to have been around 31 Videopac+ 'enhanced' games.
The Casio PV-1000, Super Cassette Vision, Amstrad GX4000 (which
LOOKS exceptionally cool for the gen) and the V-Tech Socrates (more an educational toy really) are all barely worth a mention.