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What people forget is,it was NOT Nintendo dropping the Nintendo Play Station project and Sony went ahead and made the Playstation that hurt Nintendo,it was the fact N64 stuck to expensive cartridges and the PS1 had cheap any easy CD roms to develop for so the 3rd parties flocked to sony.

Nintendo was right to drop the SNES CD project (look at Sega CD) it's just that N64 SHOULD have been CD.