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As for the OP, in an alternate universe where the Nintendo 64 was also CD-based, THAT would have been a real game-changer. I think Nintendo would have won in the U.S.. They would have dominated in Japan, because Final Fantasy, Dragon Quest, and all the major 3rd party Japanese titles and franchises that went PlayStation exclusive, would have been either Nintendo 64 exclusive or multi-platform. And that would have had major effects on other markets as well including Europe and the Rest of the World. You don't think that a sizable portion of those new European gamers who went with the PlayStation 1 in our reality wouldn't have gone with the Nintendo 64 instead in this alternate one? I still think the PlayStation 1 could still have won those markets, but it would be a lot closer and not the total cake-walk that it was. The way I see it, this is how sales would have been in this alternate reality.

Americas: (Actual)
N64: 30-34 million (20.11 million)
PS1: 25-29 million (38.94 million)

Europe: (Actual)
PS1: 22-27 million (36.91 million)
N64: 15-20 million (6.35 million)

Japan: (Actual)
N64: 15-20 million (5.54 million)
PS1: 5-10 million (19.36 million)

RotW: (Actual)
PS1: 5-7 million (9.04 million)
N64: 3-5 million (0.93 million)

Overall: (Actual)
N64: 63-79 million (32.93 million)
PS1: 57-73 million (104.25 million)

Sony might have still won, but it would have been significantly closer than it actually was and they would have been the underdog in this scenario. I think Nintendo would have won in the end.