Whether or not Katy was releasing at the same time, the era would have turned out the way it did. Pop fans obsess over making everything a competition, but that isn't what made the era go the way it did. Gaga was not in a good place mentally or physically, she wasn't inspired the way she normally is and she wasn't ready to get back out there....her people were rushing her. She said she was writing to tracks and couldn't sit at the piano and write like she normally does.
And when the era started, she was depressed with everything going on behind the scenes (her management drama, her realizing that a lot of people she thought cared about her only cared for the money she could make them, etc).
However, it made Gaga feel inspired to go back to the basics and focus on showcasing her raw talent to the world, and she's gotten so much more respect in the process. She's more focused now on cementing a legacy.
All that said, I still think it's hilarious how some of you guys are still talking about it 3 years later. You act like it was this colossal flop when it had two hit singles, it was #1, sold decently, and had a successful tour.