If Nintendo had compromised on the N64 and either included a CD-drive or even scrapped the 64DD (which went nowhere anyway) and made a CD-drive add-on early in the N64's lifespan I think it definitely would've been the no.1 platform of that gen, and the course of video game history would've gone very different.
I mean, OK, so you didn't like the deal you signed with Sony. Fine. Philips was willing to give you CD tech too. And you could've easily made a cartridge + CD system satisifying both EAD and the broader dev community.
But to stick to only carts and to alienate *every* third party developer was just way too arrogant.
Imagine the N64 launch with Super Mario 64, but with Resident Evil 2 (CD version) day and date with the Playstation version a few months later. Probably with better graphics. Imagine no software droughts. I think even Squaresoft probably would've coming running back, but even if they didn't, Nintendo could've at least retained Enix (Dragon Quest VII was supposed to be an N64 game).
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