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The game industry would probably be a very, very different place today.

The "Nintendo 64" probably instead would've been a custom Sony chip made by Ken Kutaragi with a Sony CD drive (and perhaps a cartridge slot too ala the Saturn) and Sony Imagesoft would've become a Nintendo 2nd party in effect I'm guessing for a few software titles.

The "Playstation" IMO wouldn't exist, it would've just been like the Panasonic Q, a odd collectible type of thing, but Nintendo + Sony would've carried on their relationship to the successor to the Super NES.

And Sega may still be making hardware today if that's the case.