Originally posted by hvfsl
Nintendo is famous for have very good ideas/products then making really bad decisions. They were working with Sony on the N64, then they stabled Sony in the back by working with Panasonic instead. Sony then went off to make the PlayStation.
Actually, you both are close...
Sony has a guy working there, named Ken Kutaragi. He is very aggressive and smart. The wonderful sound chip in the Super Famicom, he designed it.
Sony approached Nintendo, after seeing the huge potential of the Multibillion dollar industry Nintendo basically owned (in japan), and said, mostly on the advice of Kutaragi, "We need to get into this." Sony with Kutaragi worked with Nintendo on the Super-CD project which would augment the Super Famicom with CD capabilities, and it was called PlayStation.
The project was very close to finished, when contractual disputes occurred. The dispute was centered around the fact that Sony, as a co-developer of the PlayStation had the right to sell their own version of the Hybrid Super Famicom/PlayStation CD unit..the problem was, games made for Sony's PlayStation would not run on the Add-on CD drive or standard Cartridges for Nintendo's system. This meant Sony would be able to ride on Nintendo's "wave," and catch them off-guard.
Sony's system, as it would be all-in-one would have most likely sold more than the add-on for Nintendo's Super Famicom, and therefore give sony a leg up on Nintendo. Basically, a stab in the back. In many ways it was Nintendo's, specifically Yamauti's (NCL's Prez), fault for partnering with sony...though it may have stalled sony in the short run, canceling the project, only delayed the inevitable, and sony sure as hell was pissed....
Now, if it wasn't for Kutaragi, Sony probably would be in big trouble today, because PlayStation counts for more than half of Sony's profits...at the expense of Nintendo of course. You know this guy, 10 years ago, before PS1 was finished, already targeted Microsoft as a certain competitor !! He's very cunning and smart.
Anyways, FYI Sony also picked AOL as their main distributor for PSOnline (at least in USA)...