Who knows if Sony would have even gotten into the home gaming market had it not been for this episode. I'm not sure what Nintendo was thinking. They probably wanted someone to make a device to their specifications and Sony probably wanted to be more of a partner. Ultimately, Nintendo decided against CD tech at the time.

In another interesting story, kind of in reverse, Atari screwed themselves over with Nintendo. When Nintendo was first trying to bring the NES to the U.S., they offered Atari the distribution rights. But then Nintendo learned that Atari had no intention of actually distributing it but instead just wanted the rights so nobody else could distribute it and they were going to release the Atari 7800 instead. Nintendo decided to do it themselves...