What if Squaresoft and Nintendo never broke off?

For argument sake let's assume that N64 went with the CD route and all the classic Nintendo games like Super Mario 64 and Zelda works well on it (I know that's one of the concern with going to a CD system)



Would have love to see a true sequel to this game

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If the N64 is CD-based, we get 'Final Fantasy VII' as an N64 exclusive - the game was originally meant for the N64 until Square decided that the N64's cartridges weren't big enough and switched to the CD-based PlayStation, where it became the Sony machine's first real Killer App (it sold something like 2 million in Japan within the first week, unless I'm mistaken).
 
Final Fantasy VII becomes ones of the most popular games on the Nintendo 64; maybe Cloud Strife becomes an lockable playable character for TTL's Super Smash Bros. Maybe instead of going to Sony, you would have Hideo Kojima deciding to drop Sony and have Metal Gear Solid be developed for the Nintendo 64 or perhaps maybe for the Sega Saturn?
 
due to butterflies, FF7 could also very well be called FF4 (since until that point only three other Final Fantasy titles, #1, #4, and #6, had been released). this might mean that Sony doesn't take off as well as it did and Nintendo remains dominant and has more RPGs on its consoles and handhelds
 
Will Nintendo be using Sony's cd system or Philip's? (I hope the former seing what happened with the CDi.)
 
Will Nintendo be using Sony's cd system or Philip's? (I hope the former seing what happened with the CDi.)

Yes, in the real world a deal between Sony and Nintendo almost came trough. I guess today we would see the WiiU be a mix of PS3 tech and motion tech.


The Video Game world would be between Nintendo and Microsoft.
 
The Video Game world would be between Nintendo and Microsoft.

It should be noted that without PlayStation (which is what I assume you're suggesting), there's a chance that Sega would still be in the console business, as a lot (though not all) of the major mistakes made with the Saturn (the alleged redesign, the 'surprise launch', etc) were in response to the PlayStation.
Also, the Xbox's development began circa 1998, so without Sony entering into the market and dominating with their first console, there's a chance that Microsoft might not want to risk entering the market, especially after seeing Apple's attempt (the Pippin) fail so miserably.
 
so instead of there being three consoles and the PC, there's Microsoft with the PC and Nintendo with the major consoles. i imagine, in this case, the PC would have a much greater reputation as the powerful engine while the Nintendo consoles have more regard for sheer fun even with (slightly) poorer graphics and inflexibility (because PC games are alot easier to modify; simple mods can be made with just a standard text editor for PC games, whereas for a console you need a bunch of other tools)
 
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