Plans derailed because of a contract dispute that prompted Nintendo to reconsider the relationship.Nintendo quietly made a side-deal with Philips Electronics to make a different disc-based SNES add-on and canceled their existing agreement with Sony.Sony had spent years developing their console system but was late in creating an internal game-development division.While they did put one together in November 1993—Sony Computer Entertainment—the system was slated to release in Japan the following year, which wasn't enough time to give their upcoming console a full slate of launch titles.Once Nintendo got word that Sony was using the tech they developed under the partnership, Nintendo tried to cease the development of the system by suing Sony.
Computer gaming had already jumped on the CD-ROM bandwagon, so game publishers and developers already knew the benefits.
The benefits of a major disc-based console system as powerful as the Play Station's capabilities had third-party publishers and developers chomping at the bit to develop for it.
The partnerships allowed developers to start early and allow the system to launch with a robust selection of games, with a constant stream releasing every week.
During the first and second generations of video game consoles many electronics companies jumped on the console bandwagon.
After all, they already built products using the same parts, so why not enter into the hot new gaming fad?