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bdbdbd said:
@Legend: You are right on that one, since PSX and PS2 gained their 3rd party support because they were so popular.
Resident Evil 7?

 I'm not sure if they were exactly more popular at the time, depending on what the exact timing was on the release of those games.

The PSX however, proved to developers that 1) they would pay less licensing fees to Sony, meaning more money coming to them or less that would be required to get started, and 2) The CD medium would be much cheaper to mass produce compared to the cartridges of the N64 at the time.

In effect, it was much easier to get games out onto the PSX than the 64, meaning it was much less risky for the devs to put titles out and they would make a larger margin of profit. There could be many more factors that attributed to this, but from a buisness standpoint, you look not only at what is popular, but the projected costs to profit ratio will look like.