People saying Playstation would have still won are using hindsight.
I bought a PS1 (and every iteration afterwards), but the fact was that Nintendo was the king before that generation. It had 3rd party support from all the big publishers (usually having the superior iteration if comparing a multiplat to Genesis' console). All the games that made PS1 so great would have probably been on Nintendo's machine had they used CD (aside from the Sony first party exclusives, which, albeit great didn't have the impact that Nintendo first party exclusives did).
What killed the N64 was staying with cartridges. It lost them the big games like Final Fantasy (which were on Super Nintendo), and other more cinematic style games that relied on assets it couldn't fit. Of course, if they went with the CD format, they wouldn't be able to make games as responsive as Super Mario 64 and LoZ: OOT, because CD loading times took too long to be so quick feeling. But knowing Nintendo, they would have found solutions to make great first party games whether on CD or cartridge. But the N64 was the beginning of Nintendo losing big 3rd party support, and it's pretty much all because of the cartridge.
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