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That Guy said: Nintendo has been fighting to get back 3rd party support they lost ever since the N64 days. That was back when us nintendo people were quite the elitists and said things to the effect of "eh, screw Square. we don't need final fantasy anyways." However, by comparison, the PS1 was the developer's friend. Though it had "outdated graphics" compared to the N64, it was cheaper to develop for and made more money due to higher user base and less royalty fees. Its kind of funny seeing how the pendulum is starting the swing the other way, with the Wii being cheaper and more developer friendly and with the PS-TRIPLE having high development costs.
There was initially a perception that the N64 rocked the PS1, from a developers viewpoint. This was in part because of the masterpiece that was Super Mario 64. But the more developers used it, the more they realised this just wasn't true - the PSX was actually a superior machine. I believe this is what REALLY killed Nintendo in that generation (small, expensive carts didn't help either). Nintendo also refused to release the full "microcode" specs to the N64, that would have released the full power of the machine (basically programming the GPU directly from what I understand). It was only at the end (when failure was assured) that they did - for games like RE on the N64.

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