Oh dear butterflies, how I love you so.
Quite a few things may be impacted. The SNES CD goes forward, let's say, because of a decent contract in the first place. It fails because of horrible FMV games and people don't like add-ons.
This likely influences Sega not to build either Sega CD or 32X, and instead to focus on games and the upcoming Jupiter/Saturn (Jupiter cartridge, Saturn OTL CD system). Will it give them a better Fifth Gen system? Probably. Christmas 1994? Maybe. However without Sony pressuring them with the Playstation I imagine spring 1995 in Japan, Christmas 1995 in North America.
The Amiga CD32 is still doomed, as Commodore is not changed by SNES CD.
3DO is likely to still launch early and suck out loud because of the high price. Conversely butterflies from the SNES CD convince Trip to delay to Christmas 1994, for a more sensible $399 price and focus on making it a game console.. Doomed in Japan of course, but could be pretty big in North America/Europe.
The Atari Jaguar is probably still doomed. It would be nice for videogame history's sake if Atari joined the 3DO group and thus 3DO could brand their stuff under the Atari name. Is it likely? Perhaps the failure of SNES CD pushes Atari into deciding it needs partners in hardware and software. They try and improve the Lynx to gain more future Atari console software developers and meet up with the 3DO group. Having the name Atari on the 3DO console is certainly worth something (especially if Lynx improves into a tie with Game Gear). Perhaps the 3DO simply buys Atari's console divisions and Atari (instead of 3DO) becomes the umbrella organization?
Sony has been burned on this whole thing. I wager they either develop the ATL Playstation, or (like Panasonic) join up with 3DO. You can go either way, certainly. We can't have four consoles survive and I'm partial to a North American based console earlier than the Xbox, so Sony joins 3DO group and expands software development.
Nintendo has been burnt on a) hardware expansion, b) third party software (I imagine that they had maybe 1-2 games for the SNES CD, except that there were likely only a dozen games for in total), c) the CD format.
Interestingly Zip drives came out in 1994, and had quite a resemblance to the N64DD. Rewritable magnetic media.
So let's say Nintendo designs the Ultra Nintendo around the Zip drive instead of cartridges or CDs for a Christmas 1995 launch. Perhaps they were working on the cartridge based model, but saw the Zip drive and redesigned.
This will make it more expensive because it's launching earlier, but using in-a-plastic-case Zip disks lets them take advantage of pretty reasonable economies of scale by late 1995 and Zip disks start out holding 100MB (versus 4-64MB on carts, and 650MB for CDs) and will scale up to 750MB. Obviously people like Squaresoft won't be as pissed at them as in OTL, and might like the fact that their games can be rewritable.
Perhaps it lines up like this:
Atari/3DO Jaguar (OTL improved 3DO) launches Christmas 1994 for $399.
Sega Saturn (OTL way improved Saturn) launches Spring 1995 in Japan for $399 & Christmas 1995 in North America/Europe for $349.
Ultra Nintendo (different from OTL N64) launches Christmas 1995 in Japan, and Spring 1996 in North America/Europe for $299.
Obviously Atari/3DO benefits from being first on the scene, but at a higher cost. It's a year later than IOTL and as such should be just fine on the hardware front against the Saturn/Ultra. Interestingly multiple partners manufacture it, namely Sony/Panasonic in Japan, and other people in other markets (bigger partners in the ATL). Being early likely means a dogfight with Genesis/SNES and a struggle to get good games. Odds are by the time the Saturn comes out they finally have decent ones. Maybe the ATL Tempest 2000 & Aliens Vs. Predators, among others.
The Saturn benefits from much better hardware design and Sega has far better relationships with developers without the CD/32X garbage. Plus 6 months in Japan means it comes to the States with a couple decent games and having weak games in Japan wouldn't hurt it too much as it would only face SNES. Hopefully they have Sonic for the US launch, but it likely won't be true Sonic 3D—more like Sonic in 3D on rails.
The Ultra Nintendo has the best hardware, of course, probably better designed if slower than OTL but will end up with better looking games (OTL N64 had some hardware design problems that limited overall graphics). Plus Mario is a force to be reckoned with, and will usher in real 3D gaming. Furthermore less third party defectors (OTL: cartridge, Playstation dominance) means better games overall.
A true 3-way war? One can only dream.