It wasn't that they didn't allow Sony to use them but rather that simply just wasn't part of the deal. Philips was offering a disc drive for Nintendo to use at a low cost but they'd get to license a few Nintendo IP's for their own console - the CD-i.
See, Philips already had their own console out. Sony didn't. So it wouldn't make sense for Sony to want to license Nintendo IP's at the time because they didn't have a console already out....and worse still is that they would eventually have rights to ALL Nintendo IP's anyway as part of the contract they wrote.
The rEVOLution is not being televised







