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Erik Aston said: With N64, it was Nintendo's policies towards third parties that killed them. If you don't know about those, then read up. They were basically trying to control the growth of all third party developers and publishers with a series of illegal monopolizing policies. It was no surprise third parties raced out the door when Sony provided a real alternative (ie, an alternative that had differentiated themselves from Nintendo... Sega hadn't.) The expense of carts cutting into potential profit margins certainly accelerated the exodus, however.
The N64 died for various reasons - this was one of them. Technologically, the machine was INFERIOR to the PS1 - and this hurt a lot in the long term. Carts were also too small, and too expensive - CD's stored 10-100x the data, for a fraction of the price. Remember that the PSX was out BEFORE the N64 - not the other way around. It had lots of momentum, but gradually died as developers got fed up with it (hard development, low margins, inferior games).



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