WI: Nintendo competes more directly with the Sega Saturn and the PS1

What if instead of releasing the Nintendo 64, Nintendo released a next-gen successor to the SNES at the same time the Sega Saturn and the PS1 came out, and this ATL SNES successor would be CD-based and have equal power to the Sega Saturn and the PS1? How would this happen? How would this affect Sega and Sony? Would Sony still win the console wars? Or would Nintendo win the console wars? How would this change Nintendo?
 
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What if instead of releasing the Nintendo 64, Nintendo released a next-gen successor to the SNES at the same time the Sega Saturn and the PS1 came out, and this ATL SNES successor would be CD-based and have equal power to the Sega Saturn and the PS1? How would this happen? How would this affect Sega and Sony? Would Sony still win the console wars? Or would Nintendo win the console wars? How would this change Nintendo?
To answer your question, would this affect Super Mario 64 in some way?
 
Honestly the most likely answer is that if Nintendo was inclined to do this then they wouldn’t have shafted Sony in the first place, and thus the PS1 wouldn’t exist.

In which case RIP Sega.
 
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