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If there was no NES, there would be no industry for PlayStation to expand. And if there was an industry, I doubt Sony would've even bothered putting any money into something that they would've viewed as playing with fire. It was the partnership with Nintendo that led the way to PlayStation being a thing in the first place.
- The western market was the ONLY substantial market at the time. 
- They also created the Japanese market. 
And the market was expanding anyways. All the kids who were brought in with the NES and SNES/Genesis, would've been adults and teenagers by the time the Saturn and N64 hit the market, along with all the kids and new generation that THOSE systems would have brought in.