Nintendo’s consoles have faced off against many rivals over the years, and in each encounter, they have almost always come out on top. Atari spiraled downwards after crashing the video game industry, Sega failed to follow up on the success of the Genesis, and even Microsoft isn’t the system-seller it used to be.
Of all the major consoles that have challenged Nintendo, only the PlayStation has been a consistent threat to the company’s console dominance. Sony’s flagship console could have easily gone down the short-lived path of most other brand-new systems, but Nintendo only has itself to blame for its competitor’s continued success.
Nintendo and Sony’s Short-Lived Partnership
Before launching on its own with the PlayStation, Sony had originally intended to partner with Nintendo for its first foray into console manufacturing. The two companies already had a history together, with Sony having manufactured the SNES sound chip and published multiple games for Nintendo’s consoles. However, its next project would shake up the entire video game industry—though not in a way that anyone had expected.
Sony’s original plan was to create a CD-ROM drive for the SNES, similar to the other CD-ROM add-ons released for competing consoles such as the Sega CD and the Atari Jaguar CD. Despite every other console seemingly switching to disc-based formats, Nintendo was initially hesitant to sign on to Sony’s proposal. At the time, CD-ROMs were still a new addition to the gaming industry, and the advantages of their high storage capacity were offset by their slower load times and lower durability compared to traditional game cartridges. Thankfully, Sony engineer and head of the add-on project Ken Kutaragi eventually convinced Nintendo to take a chance on the CD-ROM.
After receiving Nintendo’s reluctant approval in 1988, Kutaragi and his team at Sony began work on a prototype for the ambitious add-on. However, it didn’t take long for the project to shift focus, as the original plans were soon pushed aside in favor of designing a full-fledged console. This new system was given the name “PlayStation.” But despite sharing the same title, it wasn’t exactly the same system that would transform Sony into a console gaming icon.
The “Nintendo PlayStation”—as the prototype is colloquially known—was functionally the same as the originally planned add-on. This prototype shared a similar shape with the classic SNES, but featured a bulkier outer shell to fit the added optical disc drive. At the top of the console was a top-loading cartridge slot for inserting SNES games, as well as an extra screen display and buttons for playing CDs. The prototype also included custom “PlayStation” controllers, though these were just ordinary SNES controllers with the PlayStation branding plastered on the front.
While most of these prototypes have been lost to time, a few were thankfully preserved by Kutaragi and Dan Diebold, and there are photos and footage showing the Nintendo PlayStation in action. I also highly recommend checking out Ben Heck’s two-part series on the Nintendo PlayStation, in which he disassembles and restores one of these early prototype units.
Although Sony’s prototype impressed the execs at Nintendo, its negotiation skills did not. The agreement Sony had proposed gave it full ownership over the console’s unique “Super Disc” format, total control over CD-based software licensing, and guaranteed it would receive all profits from music and movies released for the PlayStation. To Nintendo, it seemed like Sony was planning on reaping all the rewards while cutting the original console manufacturer out of the profits.
As both sides repeatedly failed to reach an agreement, their partnership rapidly began to sour. The growing tension between the two companies came to a head at the 1991 Consumer Electronics Show, where Sony publicly announced its partnership with Nintendo to develop the PlayStation. Only a day later, Nintendo suddenly announced that it had decided not to continue working with Sony, and had instead partnered with Philips (then-Sony’s leading rival) to finish development on the CD-ROM add-on.
Their partnership lasted a bit longer, and Nintendo initially suggested Sony continue working with them in a smaller role unrelated to its gaming consoles. However, Nintendo’s blatant betrayal and the resulting public humiliation for Sony pushed the latter to split off and finish the PlayStation on its own. Now a direct rival to Nintendo, Sony decided to launch its console against the then-upcoming Nintendo 64.
It wasn’t the first time a new console manufacturer dared to challenge Nintendo’s grip on the console market, but these feuds rarely ended well for the underdog. But this time was different, as Nintendo soon found itself fighting an uphill battle.
How PlayStation Beat Nintendo At Its Own Game
Nintendo entered the fifth console generation with a rough start. Despite securing a better deal with Philips, the SNES add-on was ultimately canceled. Much like its agreement with PlayStation, Nintendo had promised more than they should have, as Philips still walked away with the rights to use the Super Mario and Legend of Zelda franchises. This led to the release of the infamously terrible Hotel Mario and The Legend of Zelda: The Wand of Gamelon for Philips’ own CD-i console.
Meanwhile, Nintendo was left with nothing but lost time and a burgeoning new competitor. After its two attempts at implementing an optical disc drive into its consoles had backfired with disastrous results, Nintendo understandably stuck with its tried-and-true game cartridges for the Nintendo 64.
Sony, on the other hand, held a massive advantage over Nintendo. Instead of starting from scratch, the company was able to continue its work on the formerly-Nintendo PlayStation. Furthermore, its decision to keep the disc drive and ditch cartridges altogether would prove to be the PlayStation’s greatest strength, as developers were able to take full advantage of the CD-ROM’s increased storage space. If one disc wasn’t enough for a whole game, the PlayStation also allowed for mid-game disc-swapping, which larger RPGs like Final Fantasy VII and The Legend of Dragoon frequently used to deliver feature-packed worlds and flashy full-motion video cinematics.
Thanks to all this, the Sony PlayStation launched in 1994 (1995 in North America and Europe)—two years ahead of the Nintendo 64—and with an impressive lineup to boot. Ridge Racer, Rayman, and Battle Arena Toshinden all helped show off the PlayStation’s ability to deliver groundbreaking 3D graphics with fast-paced gameplay and a consistently smooth performance. When the Nintendo 64 finally hit store shelves in 1996, many of its innovations in 3D gaming were somewhat overshadowed by the leaps and strides of the PS1.
That didn’t stop the Nintendo 64 from becoming a gaming powerhouse of its own, and the console ultimately proved to be another huge success for Nintendo. However, there’s no doubt that the fifth console generation and the systems that followed would have looked very different if Nintendo and Sony had settled on an agreement, or even if they had parted ways on more amicable terms.
Instead, the PlayStation became an arguably bigger threat to Nintendo’s console dominance than the Sega Genesis. Whereas Sega and Nintendo were heralded as equals in the 16-bit era, the PS1 was widely regarded as the superior system. The Nintendo 64 still survived thanks to its unmatched library of revolutionary classics (Ocarina of Time, Super Mario 64, Goldeneye 007, Super Smash Bros, and the list goes on), but it was certainly the first time Nintendo found itself struggling to stand up to the competition.
Nintendo’s Biggest Loss Was a Triumph for Everyone Else
Today’s gaming industry isn’t as fiercely competitive as the console wars of the 90s, but console manufacturers have maintained a healthy rivalry, and that’s largely thanks to the original PlayStation. For many years, Nintendo single-handedly set the standards for gaming hardware with the NES, SNES, and Game Boy. It wasn’t until the Sony PlayStation that these standards were finally taken out of Nintendo’s control, forcing it and the rest of the gaming industry to adapt to heightened expectations with its next consoles.
Since then, Nintendo, Sony, and now Microsoft have continually pushed each other to improve and innovate with each new system. Many modern conveniences, like built-in online functionality, game streaming services, and digital storefronts are now available on all platforms because of the constant drive to keep up with the competition. At the same time, it’s also allowed each of the three major manufacturers to carve their own niche in the console market. Xbox is now the main hub for digital streaming and cross-platform gaming; PlayStation has distinguished itself with a library of high-profile exclusives; and Nintendo finally got the last laugh by dominating sales charts with its return to cartridge-based consoles.
Ever since Sony stepped into the console ring, there hasn’t been an obvious leader for the console industry. The battle between the PS1 and Nintendo 64 never had a clear-cut winner, and the victor for subsequent console generations has alternated between Sony, Microsoft, and Nintendo. While we could point to the Nintendo Switch as the champion of the latest lineup of consoles, there’s no guarantee that it will continue to maintain the lead in the future.
That uncertainty encourages console manufacturers to find new ways to outperform or innovate ahead of the competition. That’s why video game graphics and online functionality keep getting better with every new console generation, while fresh ideas like the Switch 2’s mouse mode and the PS5’s haptic feedback continue to bring much-needed improvements to the console gaming experience. This competitive spirit has always been the driving force behind console gaming’s evolution. Modern consoles certainly aren’t perfect, but it’s thanks to the rivalry between Nintendo, Sony, and Microsoft that console gaming is still thriving today.
Nintendo’s failed deal with Sony might seem like a minor footnote in gaming history, but there’s no telling what console gaming would have looked like without it. While it’s easily one of Nintendo’s biggest mistakes, it undeniably shaped the future of gaming consoles in countless positive ways.
With both Nintendo and Sony still delivering fantastic systems along with ground-breaking games, it’s safe to say that their controversial break-up might have been for the best.
