The biggest impact would be the overall lack of growth in the industry, that was almost entirely powered by Sony’s brand and marketing. Sony actually made video games kinda “Cool”, especially in Europe.
There’s probably a very very good chance the Sega Saturn significantly outsells the N64 as all the PS games would likely just be Saturn games. Things like FF7 were just impossible to do on the N64 carts. Or maybe something like FF7 just didn’t exist and a much less ambitious FF7 existed on the 64mb N64 cart, probably looking more like Dragon Quest 7 which sold something like 200k copies in the west. Games like Resident evil and Metal gear would be the exact same. These games are either Saturn games or they simply don’t exist in the way they did, and these were industry pushing games.







