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Wman1996 said:

1. The format. Whereas the CD was mostly a benefit for PS1 (minus load times and scratches), UMD was an anchor for PSP. DS wasn't really trying to compete with PSP in specs like N64 was with PS1, so the much smaller storage space of the DS Game Cards isn't a big deal like it was on N64. Sony realized this eventually and released PSP Go as well as using Game Cards for PS Vita. Optical drives on a handheld are not a good idea.

Not to mention that around the time the DS came out, dedicated compression codecs and APIs were becoming cheaper and more readily available to developers. And with DS game cards having much larger capacities than N64 cartridges, it was much easier for developers to incorporate FMV, streamed audio, and voice work into DS games (abiet at a lower quality than PSP) than it was for N64 games.

So the storage advantages that UMD had, ultimately never mattered that much in the end.