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Ken Kutaragi (Sony) offered a SPC 700 chip to help improve the sound quality of Nintendo. The sound chip led to a deeper collaboration between Sony and Nintendo.

Why did Nintendo drop Sony and choose Phillips?
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Nintendo was actually trying to partner with both Sony and Philips at once, but more to the point they saw the CD-i and wanted to bring that technology under Japanese control, and make it cheaper by leaving out Philips and going with Sony. But Sony, seeing how fickle and treacherous Nintendo could be, ended up severing their relationship with Nintendo leaving them nobody who could build a CD-ROM based console but Toshiba aka Matsushita aka Nihon Denki, aka NEC, who had their own system making them unreliable as partners.

Nintendo stabbed everybody in the back and just kinda got the cold shoulder from everybody in return. The ultimate move was by Sony, who took the ideas they had from Nintendo and teamed up with SGI to make the Playstation and PS2, sucking all the life out of Nintendo to this day. Nintendo seems to basically subsist on a small but loyal but not growing fan base. But video gaming is pretty much dead on systems such as they were, everything is a phone or PC now and the only real difference seems to be how censored you'll get and who takes what cut for your game to appear on their store.
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>>12363728
>Nintendo seems to basically subsist on a small but loyal but not growing fan base
I'm waiting for the price drop too but let's not be delusional
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>>12363517
I think Sony wanted the rights to and royalties from the SNES CD game disc format.
Nintendo didn't like that.
Sony seethed so hard because Nintendo went with Philips (non-Japanese company), they felt so betrayed in their Japanese values, they started developing the PS1. Nintendo and Sega really underestimated Sony because they just made electronics. Nintendo and Sega were highly competent and seasoned game developers.
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For the SNES sound chip, they were merely a supplier of spare parts for Nintendo. As with those who supplied the other processors, that was the end of Yamauchi's involvement.
So, for the Nintendo-Sony contract for the SNES PlayStation, Yamauchi expected to pay for X million CD players. Except that the contract was too advantageous for Sony, to the point that even Ken Kutaragi didn't believe it.
Nintendo was asking for $13 in royalties on its cartridges and was going to ask for the same on CDs.
And $13 was expensive in the opinion of third-party publishers, and yet Sony wanted $21 in royalties (in addition to Nintendo's...) on all SNES PlayStation CDs (games, karaoke, video CDs)!!

And Yamauchi didn't accept that.
So he turned to the other co-inventor of the CD, Philips, except they didn't know how to reduce loading times (unlike Sony). So time passed, the PlayStation and Saturn were released, so they needed to quickly create a machine to avoid being left behind during this generation, and that's why the N64 still has cartridges.

https://youtu.be/v-IKag_kU3s?si=S-Lqd4z8iQCmXPxf

This video show loading time before and after Playstation release.
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>>12363517
this was ultimately a good outcome. sony's natural form would have been stunted collaborating with nintendo, probably would have resulted in a messy breakup as they eventually realized their potential. better to have ended it before it began.
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>>12363850
Don't expect honesty from a console warrior, anon.

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