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Pretty much everything has been said, part of the momentum given by Japanese devs such as Square Enix, Capcom and Konami would have stayed with Nintendo mostly which means that the big boost the PS1 got in the west (Americas) and Japan wouldn't be as strong, I can't imagine how much a "legendary" game like FFVII and it's follow up would have benefited Nintendo at the time and now with this widen audience, there's more possibility for them to enjoy great games such as SM64 and OoT.
Sony would probably have kept a good momentum in Europe though.

BTW, Mother 3( aka Earthbound 64) might have probably released on the N64 since the CD format allowed for better storage space which was lacking with the cartridges.

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