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Because of the cartridge choice over CD. 

Price of games. Most ps1 titles were $40-$50 while N64 were $60-$70. Big difference.

In addition to that many third parties migrated to Sony over Nintendo due to format differences.  The SNES had excellent Square Soft, Capcom, Konami, etc. support.  But the N64 lost all that.  Had the N64 been disk based, I don't think Sony would be who they are today.  It was a massive mistake by Nintendo.

Last edited by Chrkeller - on 18 November 2020