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I don't think it was the main problem of the N64.
- It didn't get enough support from 3rd party. Saturn had CD and didn't get so much either. The main reason is that Sony was very friendly to 3rd party and hardware very simple to code for.
- it would still have been launched too late.
- Sony really had a cool image, while Nintendo was somewhat for kids or outdated (talking in term of image)
Anyway Nintendo managed in term of games, sales and profit. But I dont think it would have been so different.