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Boy, always love this revisionist history. If only Nintendo had a disk player, they would have won. Sorry, but no. There's a reason Nintendo didn't have a disk. This was arrogant Nintendo who didn't listen to any devs and were basically dicks. How much of a dick? They entered into a contract with Sony without reading it, I guess. Then when they finally got around to reading it, they didn't like it, so pulled out. Oh, but did they tell Sony they had pulled out? Hell no. They just allowed Sony to announce the PS and the Nintendo partnership, only to announce one with Philips shortly after. If you don't think that sent some shockwaves through the gaming scene, mostly behind the scenes, you're naive.

So, you have a dickish console maker, where Sony was offering cheaper liscencing fees, as well as more freedom for devs/pubs. Those games you assume would have been exclusives for N64 would have most likely been multiplat. Hell, some may have just stuck to the PS1 because Sony would have charged less per disc for their games and weren't as controlling. 

And while not the biggest point, it's still a good one for the general consumer, it had a much better controller for gaming. You can't even reach 1/3 of the N64 controller without moving your hand to a 3rd grip. Horrible design. Playing more complicated games was a nightmare. With the PS1 controller, especially the DS, you have access to everything comfortably. There's a reason its the standard everyone used for decades, and still do, only putting their own slight spin on it.