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What's your point?

You wanted Nintendo do pander to third parties and making a system that would be crippled to their style rather than the way that they did it? That would have slowly eradicated the only sure thing to Nintendo's profits, which is their first-party titles. Can you name one console CD title that was a hit before the PlayStation came out?

You forgot the entire point of why third parties had to pander to Nintendo in the first place, and that was because they were the only company out there with enough guts to sell a videogame system in a market devastated by a market crash, and as such were rewarded for their efforts. You'll find that most strict guidelines placed at that time were Nintendo's attempts to not follow down the path of glut and decline like Atari did...third parties HAD to play by Nintendo's rules because Nintendo rebuilt the market for them...