Could be.
The main pressure to reverse their horrible... HORRIBLE drm policy on XboxOne was the fact that Sony were right on the other side of the street, offering a near identical experience minus the bullshit.
Were that competition not there, we can only speculate if the public outcry would still have been enough to make them change their mind. They might have thought to themselves "It's us or nobody. Bend to out will, or go buy a Wii U *evil scoff*"

And we can also only speculate if people would have caved in. What's the alternative? A PC? I love my gaming PC, but they're prohibitively expensive, require some technical know-how to get them set up and even more to play them in your living room. Basic stuff to us maybe, but to the layman? Perhaps not.
Wii U? Well shit, without PS4, might the Wii U be getting more third party support? Might it have succeeded in becoming a proper competitor to the XboxOne without the PS4 around to offer up the more palatable dichotomy of Sony vs MS?

Who can say. Too many variables.
But assuming the absence of PS4 in this hypothetical universe was the only difference, maybe there would have been a crash by now.
But realistically, things would have played out very differently by now, guided by forces who don't want there to be a crash. Stupid, short minded forces mind you.
Fuck I don't know! Maybe! Alright? Maybe!

But you just wrote that Sega didn't have the financial means to expand gaming and Nintendo was experiencing generation/generation declines in home consoles with the NES to SNES, where would the growth and expansion come from?

Well, it did much in Germany, yes. I am not to judge it, I am to tell you how it worked and works over here.

Wait, so u think the reason N64 didn't get Resident Evil was because Nintendo wouldn't allow it? No, it wasn't on N64 for the same reason many games werent, cartridges.

If Playstation didn't exist, developers would have either sucked it up and developed games with cartridges in mind or they would have put their games on Saturn.

They used cartridges instead of CDs.

i know how it works in germany^^  but i dont see how that did anything for gaming. 

I am just not able to tell what would've been without them, tbh. Because this is pure speculation. I guess Nintendo would've won the gen quite easily but Saturn would've been way more successful. As a former Sega fan this would've been a better world for me :) What would've happened after we don't know. Sega would have made another hardware, for sure, but we don't know if it would've been the same as DC (probably not). Sega would've also gained games like Resident Evil in the end, I guess. Also Tomb Raider would've been an exclusive and so would've been many games. Though I don't see a FF7 could've happenend on Saturn, sadly (technically possible but I guess Square would have made it for N64).

As for Nintendo, they would've kept doint their thing like they always did, always do and always will do.

LOL why did PS win?  It's obvious:

-CD's were too expensive when the Saturn released, whereas the PS1 was still priced as an average console.

-Sony had TONS of killer apps like Crash, Spyro, MGS, FF7, and GT.

-CD's were WAY cheaper than cartridges to produce (Like $1 vs $30).  It's no wonder why Sony got better 3rd party support.

-Sony appealed to people of ALL ages, not just kids.

Saying the industry would be stronger without them is pure conjectgure.  There is no evidence to support this.

Your point? Resident Evil 2 was ported to nintendo 64. Why wasn't the first one ported?

Do you have a crystal ball? Because you can't say what sega or any other would have done. The comparison with sony doesn't hold any ground, since sony didn't do/save anything.