>>11962868 (OP)
>>11962890
>>11964242
>>11965250
It's because the royalties Sony was asking for were too much!
For the NES and SNES, Nintendo was asking $14 per game.
Sega, for their part, asked for $13.
Then Sony negotiated for an extra $21!! on all SNES-PlayStation compatible CD-format products (games, movies, karaoke).
Even Ken Kutaragi didn't believe in this contract. (Source: the book "Revolution at Sony")
So later, when Kutaragi took over the PlayStation project, he negotiated $7 in royalties.
That is to say, with this $7, PlayStation games cost $59 (52+7$).
Now imagine the price of the same games if the Nintendo/Sony contract had continued?
$87. (52+14+21$)