I don't think that it would have mattered at all. To me the reasons that the PS was more popular than the N64 are simple.
Sony came out with the PS first and had a head start.
3rd party support was good for the PS and terrible for the N64. Resident Evil and Tomb Raider were on the Playstation and not the N64.
The Disk format. Playstation games had cutscenes. This was new to videogaming and made it more of a cinematic experience.
FFVII and the OOT were both fantastic games but i do not believe that Nintendo releasing OOT would have made a difference. PS was outselling the N64 similar to how the Wii is killing PS3.
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"There are like ten games a year that sell over a million units." High Voltage CEO - Eric Nofsinger
