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h2ohno said:
The question is how the CD format would have affected the games the N64 had in real life. Long load times would be a real detriment to games like Mario 64, and big open areas like Hyrule Field also benefited from the cartridge format. Another question is how much the N64 would cost if designed to play CDs, but the games themselves would have been cheaper, so that would even out.

For the sake of argument, let's say their first party games stay as close to their real world form as possible in terms of actual design, albeit with the higher quality textures and audio that CDs allow.