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Hynad said:

Final Fantasy VII almost single-handedly tilted the balance in favour of the PS1.
If the N64 had gone the CD route, Squaresoft would have stayed with Nintendo, and the battle between both consoles wouldn’t have been as one sided.

This right here.

The PlayStation was floundering in Japan until Square announced FFVII as a PS1 exclusive. No FFVII, no Japan, and it would have severely damaged the PS1 in the United States as a result. Sony would have been stuck marketing Tomb Raider II and Crash Bandicoot 2 as its marquee games for the 1997 US holiday season, and in no universe can I see either game making as big a splash as FFVII and Goldeneye did.