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The N64 had a record setting start in sales. Lack of games and pricey carts hurt the system sales afterwards. All of these could be blamed on Nintendo being stubborn and going with Cartridges. The N64 was a powerhouse of a machine, it delivered arguably the better more ground breaking games of that gen (Mario 64, GE, Ocarina of Time). FFVII was a big reason for Sony's success in the mid to late 90s, had Nintendo gone CD Square might have remained with Nintendo. All things considered it is likely Nintendo either wins that race or at the very least goes even up with Sony had they gone CD. Apart from the obvious Memory limitations of cartridges, Nintendo had the better machine, and in those early days of 3-D graphics, that gap in horse power would have made a huge difference for consumers.