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Imagine a Nintendo 64 that has:
- Super Mario 64
- Mario Kart 64
- GoldenEye 007
- The Legend of Zelda: Ocarina of Time
- The Legend of Zelda: Majora’s Mask
- Donkey Kong 64
- Diddy Kong Racing
- Banjo Kazooie
- Banjo Tooie
- Conker’s Bad Fur Day
- Pokémon Stadium
- Pokémon Snap
- Star Fox 64
- Perfect Dark
- Mario Party 1-3
- Paper Mario
- Kirby 64
- F-Zero X
- Super Smash Bros.
- Final Fantasy VII*
- Final Fantasy VIII*
- Final Fantasy IX*
- Dragon Quest VII*
- Metal Gear Solid
- Resident Evil 1
- Resident Evil 2
- Resident Evil 3
- Tomb Raider
- Tomb Raider II
- Tomb Raider III
- Frogger
- Croc
- Castlevania: Symphony of the Night
- Namco Museum Vols. 1-5
- Grand Theft Auto 1
- Grand Theft Auto 2
- Rayman
- Silent Hill

(* - Likely would have been exclusive.)
... Just to name a few.

It’s not an exaggeration when I say this: Going with cartridges instead of CD-Roms was the single biggest mistake Nintendo has ever made in their entire history. It was the straw that broke the camel’s back for 3rd parties as they all left in droves. The same 3rd parties that made the PlayStation a juggernaut.

When people talk about the PlayStation, with the exceptions of Gran Tursimo, Spyro, and Crash, I don’t hear them talk about Sony’s 1st party titles. The big games everyone talks about are 3rd parties - Most, if not all, the ones I just listed.

If Nintendo had gone the other direction, all those 3rd parties would have stayed because a CD-Rom Nintendo 64 would not only have been just as capable as the PlayStation of delivering the games they wanted to make, but with it being 64-bit over its 32-bit counterpart, it would have been MORE capable. - Which means would would have seen more 3rd party N64 exclusives than PS1. And with SquareSoft and Enix both essentially being 2nd party devs to Nintendo up to that point, Final Fantasy and Dragon Quest would have stayed put - That’s Japan right there.

More sales + More powerful hardware = N64 takes higher priority.

If Nintendo had gone the other direction, the 5th generation, and the video game industry as we know it today, would have been very, very different.