PlayStation: the revolution that changed the world of video games forever

Few brands have managed to bring about such a profound transformation in the world of video games as Sony did with its iconic console, the PlayStation. The impact caused by the launch of this device was so overwhelming that, even decades later, its consequences are still noticeable in the market, in the habits of gamers and in global pop culture itself. Originally launched in 1994 in Japan, the PlayStation was not just another video game; it represented a radical change in the way electronic games were produced, distributed and consumed worldwide.

Before the arrival of the PlayStation, the console market was practically monopolized by two Japanese giants: Sega and Nintendo. For almost two decades, these two companies fought epic battles, marking generations with legendary consoles such as the Mega Drive and Super Nintendo. However, both lived comfortably isolated in their own private dispute, unable to imagine that one day a new adversary would emerge to completely transform the scenario.

In an environment dominated by a historical rivalry, where other companies such as Atari, NEC and 3DO tried to enter but failed to sustain themselves, it seemed impossible that a newcomer could arrive and triumph immediately. However, that is exactly what happened with Sony and its revolutionary PlayStation. With a bold strategy, innovative vision and a business approach never before seen in the video game market, the company surprised even the most skeptical experts by quickly gaining millions of fans and a dominant position.

But to fully understand the phenomenon that was PlayStation, it is important to note that its history is not only an important chapter in digital entertainment, but also a powerful lesson in innovation, persistence and boldness. Sony did not simply enter the video game business by chance or opportunism; it did so because it believed deeply in the potential of a new technology and a new approach to reaching audiences. This pioneering and visionary spirit is personified in the figure of Ken Kutaragi, who would become known worldwide as the “father of PlayStation”.

Ken Kutaragi, originally just an engineer at Sony, saw a huge opportunity before anyone else when the market still saw video games as children’s toys. It was his unique vision, combined with uncommon persistence, that allowed Sony to transform the PlayStation from a simple risky project into a global phenomenon. Its history includes dramatic chapters involving corporate betrayals, near-fires and twists worthy of a movie. What began as a secret audio chip for the Super Nintendo evolved into one of the most influential and revolutionary products in the history of technology.

The impact of the PlayStation went beyond simply outselling its competitors, which would be impressive in itself. Sony’s console radically redefined the image of video games as entertainment. Once seen predominantly as a pastime for children, video games became something much broader and more sophisticated with the arrival of the PlayStation. Suddenly, adults began to see games not just as occasional entertainment, but as a deep and immersive experience, comparable to movies or music. This repositioning opened the door to more elaborate narratives, complex plots and immersive experiences never seen before.

Furthermore, the PlayStation pioneered the use of CD technology as its primary media, something that completely revolutionized the industry. Unlike the traditional cartridges used by Sega and Nintendo, the CD offered considerably more storage space, lower production costs, and far superior technical possibilities. This allowed developers to produce much more complex, detailed, and graphically impressive games, ushering in the era of cinematic games that dominate the industry today. Legendary franchises such as Resident Evil, Metal Gear Solid, Final Fantasy VII, and Tomb Raider were born precisely from this new philosophy inaugurated by Sony’s console.

Sony not only offered a new technology platform, but also established a new relationship with developers and studios. While its competitors imposed rigid and restrictive policies on developers, Sony decided to go in the opposite direction, offering creative freedom and affordable prices for its development kits. This resulted in an unprecedented library of over four thousand games that explored a variety of genres and styles, attracting an incredibly diverse and loyal user base.

Another key factor in the PlayStation’s resounding success was its aggressive and intelligent strategy in the global market, especially in the United States and Europe. From its first international launch, Sony demonstrated an incredible ability to understand what the public wanted. Its bold approach, exemplified by the famous presentation at E3 in 1995, in which it announced a significantly lower price than the Sega Saturn, represented a decisive blow to quickly conquer the North American market, something fundamental to its global triumph.

The monumental success of the first PlayStation was not only a commercial and technological victory, but a historic milestone that paved the way for a lasting legacy. From there, Sony cemented its position as absolute leader in the video game industry, dominating subsequent generations as well, with the PlayStation 2 becoming the best-selling console of all time, followed by other generations that continue to deeply mark global gaming culture.

Today, decades after its launch, the legacy of PlayStation is as alive as ever. The original console remains fondly remembered and revered by gamers of all ages, while its influence is still evident in nearly every major production on the market. Its brand is so powerful that the word “PlayStation” has become virtually synonymous with video games in many parts of the world, a rare feat reserved only for the most iconic companies in history.

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1. The video game landscape before Sony: the dominance of Sega and Nintendo and the difficulties of other companies in the market

To fully understand the revolution brought about by Sony’s PlayStation, it’s essential to travel back in time to a period before its launch. Before Sony dared to enter the home console market, the video game universe was dominated by two undisputed giants: Sega and Nintendo. During the 1980s and early 1990s, these Japanese companies dictated the rules, controlled the market and competed fiercely for gamers’ attention in one of the most epic and unforgettable rivalries in the history of digital entertainment.

The video game market began to take shape in the late 1970s and early 1980s, with Atari pioneering the introduction of home consoles such as the legendary Atari 2600. However, the rapid and uncontrolled growth of the industry culminated in the famous “Video Game Crash” of 1983, a traumatic event that nearly destroyed the industry. A plethora of poorly produced games and a lack of quality control saturated the market, creating an unprecedented crisis.

It was precisely into this chaotic scenario that Nintendo emerged with its NES (Nintendo Entertainment System), initially released in Japan as the Famicom in 1983. Nintendo revolutionized the market with rigorous quality control practices and a powerful set of exclusive franchises. Characters such as Mario, Zelda and Donkey Kong quickly won over gamers around the world, helping to restore confidence in the home video game industry.

At the same time, Sega, which already existed as an arcade machine manufacturer, decided to enter the competition with full force. In 1985, it launched the Master System, its first home console to gain a considerable audience, especially in Europe and Brazil. Although in the United States Sega was still behind Nintendo, it was with the Mega Drive (known in America as the Sega Genesis), launched in 1988, that it really managed to directly challenge Nintendo’s hegemony.

The competition between Sega and Nintendo became so intense that it profoundly influenced global pop culture. Each company created its own identity that appealed to different types of gamers: while Nintendo focused on family-friendly games, charismatic characters and a more traditional and friendly image, Sega positioned itself as a bolder, younger and more rebellious brand, summed up by its famous American slogan, “Genesis does what Nintendon’t”. This dispute generated a true console war, reflected in aggressive advertising campaigns, technological battles and rivalries between fans that are still remembered with nostalgia today.

But the dominance of these two companies did not only mean financial success. Sega and Nintendo created an extremely difficult environment for new competitors. They had a well-established distribution network, strict contracts with major game developers, and massive investments in advertising, which practically protected the market from new entrants. In addition, both operated under contractual exclusivity: those who produced games for Nintendo were rarely authorized to release games for other platforms, and vice versa. This protectionist practice made it almost impossible for other companies to obtain support from outside developers.

Throughout the 1980s and early 1990s, other companies tried to break through this nearly impenetrable barrier. One of them was Atari, with the launch of the Atari Jaguar in 1993, which promised to revolutionize the market with its 64-bit technology. However, despite being technically impressive, the Jaguar failed to attract enough developers, faced marketing problems, and failed to build a solid player base. As a result, it quickly failed, putting Atari in serious financial trouble.

Another notable attempt was the PC Engine (TurboGrafx-16 outside Japan), released by NEC in 1987. The console arrived with impressive graphics for its time, gained a good share of the Japanese market, but failed to capture the imagination of Western audiences due to lack of support and an inadequate marketing strategy. Still, the PC Engine went down in history as a bold attempt to challenge the giants of the industry, although it failed to truly break the dominance of the Sega-Nintendo duo.

In 1993, another major attempt came with the release of the 3DO console, produced by the 3DO Company. It was an ambitious project, promising advanced graphics, CD-ROM support and cinematic-quality games, elements quite innovative for the time. But, again, internal problems, the high initial price (around 700 dollars in the US) and a limited library of games prevented the 3DO from prospering. The console quickly lost momentum, unable to establish a clear identity or convince gamers to abandon their already established platforms.

These examples clearly show how difficult it was for any new company to enter and establish itself in the console market in the 80s and 90s. Sega and Nintendo, despite being fierce rivals, shared similar strategies: tight control over the market, powerful franchises and close (and often exclusive) relationships with major development studios. All of this created a gigantic barrier to entry for anyone who wanted to truly compete.

In this context, few imagined that Sony – a company with no tradition in the home console market, better known for its electronic devices such as TVs, sound systems, cameras and professional equipment – ​​would be capable of changing this panorama. When rumors emerged about Sony’s interest in creating its own console, many analysts laughed or simply dismissed the idea as a project doomed to failure, especially after a failed partnership with Nintendo.

However, what many underestimated was precisely the power that Sony had accumulated in other areas of entertainment, in addition to the technological experience it had already accumulated with the development of the CD media, which would revolutionize the gaming market. Unlike the other companies that tried to challenge Sega and Nintendo, Sony had something more: a unique combination of innovative technology, solid financial resources and a differentiated strategic vision, which would allow it to radically transform the market.

Furthermore, by observing the failures of its predecessors, Sony had a crucial advantage: it had learned from the mistakes of Atari, NEC, and 3DO. The Japanese company knew that it was not enough to simply introduce advanced technology; it needed to secure a broad developer base, affordable prices, and create an aggressive and clever marketing strategy. That is exactly what it would do in the years that followed, carefully laying the groundwork for the launch of the PlayStation.

The market before Sony was therefore a virtually closed arena, dominated by two comfortably established giants. An arena in which, despite occasional bold attempts, no one managed to stay for long. And that is exactly where the greatness of Sony’s achievement with its PlayStation lies. Not only did it enter this seemingly impenetrable market, but it did so in such a forceful way that it turned the entire scenario upside down, marking a before and after in the world of video games.

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2. Sony: From radio maker to entertainment giant

Sony’s history is a perfect example of how strategic vision, technological adaptation and a culture of innovation can completely transform a company, shaping it to dominate different sectors of the global industry. Before venturing into the legendary PlayStation and revolutionizing the video game market, Sony had a long and impressive journey, marked by profound changes, immense challenges and achievements that few could have foreseen when the company was born, almost a century ago.

The birth of Sony

It all began shortly after the end of World War II, in 1946, when two visionary Japanese entrepreneurs, Masaru Ibuka and Akio Morita, decided to found a small company in Tokyo called Tokyo Tsushin Kogyo . Initially, the company’s main objective was to manufacture simple electronic components, such as radio parts, in a Japan devastated by the effects of the war. The country was in the process of reconstruction, and the vision of the two founders could not have been more ambitious for that historic moment: to create innovative technological products that would one day conquer the world.

The partnership between Ibuka, a brilliant engineer with a passion for technological innovation, and Morita, a business strategist with a global vision, quickly revealed itself to be an explosive combination of talent, creativity and ambition. The company began modestly, with just a few employees working in makeshift spaces. However, a commitment to quality, constant innovation and the ability to anticipate technological trends would soon allow the small company to stand out in the competitive electronics market.

From Tokyo Tsushin Kogyo to Sony Corporation

In the mid-1950s, Ibuka and Morita realized that growing into a global brand would require more than just high-quality products. It was essential to create a strong, easily recognizable identity with universal appeal. So they decided to change the company’s name to something that would be easily understood and accepted in international markets. After much discussion, they came up with the name “Sony,” derived from the Latin word “sonus,” meaning sound, and also from the American popular expression “sonny,” which referred to intelligent, energetic young people—exactly how the two founders saw their company.

With the official name change in 1958, one of the most recognized and respected brands in the modern world was born: Sony Corporation. This new identity reflected the founders’ desire to create not only a strong brand in Japan, but a global, innovative company capable of competing anywhere in the world. And that meant aggressively expanding its operations outside of Japan.

Sony arrives in the United States

The real change for Sony, however, came when, in 1960, Ibuka and Morita made one of the most important and strategic decisions in the company’s history: to open direct operations in the United States, creating Sony Corporation of America. This expansion profoundly changed the company’s culture and the way it did business.

Upon arriving in the United States, Morita was fascinated by the flexibility of the American business environment. Unlike the rigid corporate culture in Japan, in America, professionals could easily switch careers or positions, fostering a dynamism that allowed for rapid adaptation and constant innovation. Sony absorbed this influence deeply, becoming a flexible company, open to new ideas and extremely agile in embracing technological changes or market trends.

This cultural exchange allowed Sony to quickly develop a unique ability to identify global consumer needs and adapt its products to different audiences and markets. It is no coincidence that Sony would soon pioneer several revolutionary technologies that would shape modern entertainment.

The era of the walkman and CDs

One of the greatest examples of Sony’s innovative spirit came in 1979, when it launched the revolutionary Walkman , a portable cassette player that allowed people to easily take music with them wherever they went. The invention of the Walkman represented a milestone in the history of technology and forever changed music consumption habits, creating a new global market and a new way of interacting with technology. Its success was so overwhelming that the word “Walkman” became synonymous with any portable music device for decades.

However, Sony’s technological ambitions were just beginning. Shortly thereafter, in a landmark collaboration with Philips, Sony developed the standard CD format, which was released to the public in 1982–83. Initially intended for music playback, the CD represented an even greater revolution. The new medium offered superior digital sound quality, large storage capacity and low production costs – huge advantages over the analog formats of the day.

These innovations were essential in establishing Sony’s reputation as a world leader in cutting-edge technology. However, perhaps not even the company itself knew at the time that it was laying the foundation for the future success of the PlayStation, which years later would use CD technology to revolutionize the video game market.

First steps in video games: MSX

Sony’s interest in the video game universe began timidly in the 1980s. The company strongly supported the MSX standard, a type of home computer that was very popular in Japan and countries like Brazil, where it was seen primarily as a video game system due to its ability to run games from cartridges. During this period, Sony manufactured several models of MSX computers, in addition to publishing and developing games specifically for this platform.

Although the MSX never surpassed Nintendo or Sega in global popularity, it was a vital laboratory for Sony. It was through this experience that the company began to understand the enormous potential of the video game market as home entertainment. However, after the MSX lost momentum, Sony remained away from the market for some time, quietly observing and carefully planning its next move.

Diversification and expansion

Another crucial factor that set Sony up for its future success was its expansion into the global entertainment market. During the 1980s and early 1990s, the company invested heavily in acquiring music labels and film studios such as Columbia Pictures, quickly transforming itself into a multimedia empire with vast financial resources and expertise in global content distribution. This strategy put Sony in a unique position to understand how to reach and engage international audiences.

So when it finally decided to enter the video game market with the PlayStation in the early 1990s, Sony was no longer just an electronics manufacturer. It was a global entertainment powerhouse with access to cutting-edge technologies, a strong financial base, an innovative mindset and a deep understanding of the needs of the modern consumer.

Setting the stage for PlayStation

By the early 1990s, Sony was no longer just a manufacturer of audio and video devices. It had become a global giant, a multimedia powerhouse capable of shaping trends and markets. All of this meant that the emergence of the PlayStation was not just an accident, but a carefully planned strategic move by the company.

In this way, Sony’s history – from its founding to its transformation into a diversified multinational – was essential in preparing it for the overwhelming success that would come with the launch of the PlayStation. Throughout this journey, the company accumulated not only technological expertise, but also a unique culture of innovation, boldness and the ability to adapt quickly to any change in the market.

And it would be exactly this set of characteristics that would allow Sony, against all odds, not only to enter, but to definitively lead the world of video games.

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3. Ken Kutaragi: The Man Behind the PlayStation

Few individual figures have had as profound and transformative an impact on an entire industry as Ken Kutaragi has had on the world of video games. Known worldwide as the “father of PlayStation,” Kutaragi is the archetypal visionary who saw the future before anyone else around him. His name may not be as popular as that of characters like Mario or Sonic, but his contributions are just as – if not more – significant to the evolution of the video game industry. Without his boldness, persistence, and forward-thinking approach, PlayStation might never have existed, and the video game industry would be radically different from what we know today.

Who was Ken Kutaragi?

Ken Kutaragi was born in Tokyo, Japan, in 1950. From a young age, he demonstrated a deep affinity for technology and engineering. He graduated from Denki-Tsushin University , an institution specializing in electrical engineering, and shortly thereafter joined Sony as an engineer in the mid-1970s. During his early years at the company, Kutaragi worked on a variety of hardware projects, developing electronic components and accumulating an impressive technical understanding that would later prove instrumental in his contributions to the world of gaming.

Despite his technical prowess, Kutaragi was no ordinary employee. From the beginning, he showed himself to be restless, creative, and ambitious—characteristics that, in a traditional corporate culture like Japan’s, could be seen as both an asset and a threat to the established order. At Sony, a company that was still quite conservative at the time, Kutaragi often clashed with his superiors by coming up with ideas that were too innovative for the times. His mind was focused on the future, and it was this trait that put him on the path to history with a project that, at first, did not even directly involve Sony.

The Secret Project: The SPC-700 Audio Chip for the Super Nintendo

In the 1980s, the video game industry was booming, with Nintendo leading the way with its Famicom (known as the NES in the West). Watching his daughter play games at home, Kutaragi was fascinated by the interactive potential of video games. But more than that, he saw a promising future where entertainment technology could reach new heights. While many Sony executives saw video games as toys for children, Kutaragi saw something much bigger—a sophisticated, immersive, and technologically challenging form of entertainment.

This fascination led Kutaragi to accept a life-changing challenge: to secretly work with Nintendo to develop a new audio chip for its upcoming console, the Super Famicom (or Super Nintendo, as it became known in the West). Under cover of night, unbeknownst to Sony executives, Kutaragi began designing the SPC-700 chip , a revolutionary audio processor that would deliver sound quality far superior to that of previous consoles.

The SPC-700 was a remarkable technical breakthrough. It allowed the Super Nintendo to reproduce digitized sounds with stunning clarity, paving the way for the rich soundtracks and immersive sound effects that would become one of the platform’s defining features. Many of the SNES’s most iconic games, such as The Legend of Zelda: A Link to the Past , Donkey Kong Country , and Super Metroid , owe some of their emotional impact to the powerful audio enabled by this chip developed by Kutaragi.

However, the technical success of the SPC-700 brought with it a gigantic corporate problem. When Sony executives discovered that Kutaragi had worked directly with Nintendo without official authorization from the company, the reaction was one of absolute shock and revulsion. In the eyes of Sony’s top brass, involvement with “toys” and a rival company like Nintendo was unacceptable, almost an institutional betrayal. At that moment, Ken Kutaragi’s job was hanging by a thread. He was called to emergency meetings, severely reprimanded, and almost fired.

The times were tense. Japanese business culture, especially at large corporations like Sony, valued discipline, loyalty, and hierarchy. Defying orders or acting without authorization was considered extremely serious. However, Kutaragi had one advantage: he was not alone in his vision of the future. A man in a position of great influence within Sony believed in him— Norio Ohga , Sony’s president at the time and a key figure in the company’s transition from an electronics manufacturer to an entertainment conglomerate.

Norio Ohga was one of the few within Sony who understood the importance of what Kutaragi had done. He not only prevented his dismissal but also protected him institutionally, allowing him to continue his experiments and studies focusing on the video game market. Ohga saw in Kutaragi the same entrepreneurial spirit that he himself cultivated, and knew that there was an opportunity there that should not be missed.

This decision would prove to be one of the best in Sony’s history. Instead of pushing Kutaragi away, the company allowed him to continue developing his ideas – and later lead the project that would give rise to the PlayStation. This change in attitude marked the beginning of a cultural transformation within Sony: little by little, the company began to see video games not just as toys, but as a new and promising branch of digital entertainment, in which it could invest with real potential for profit.

What could have been the end of Ken Kutaragi’s career turned out to be a pivotal turning point in the history of technology. The development of the SPC-700 chip not only proved Kutaragi’s technical prowess, it also showed Sony that there was a new world waiting to be explored. It was a seed that, years later, would germinate into the first PlayStation – a console that would completely change the way video games were conceived, produced and consumed.

Kutaragi has proven that believing in a vision, even when everyone around you disbelieves, can lead to extraordinary things. His career is the epitome of the innovative spirit: someone who challenges the status quo, faces resistance from within and without, and still makes the impossible a reality. Without him, it is highly unlikely that Sony would have dared to enter the world of video games, let alone dominate it with such authority and influence.

The creation of the SPC-700 and the crisis that nearly cost him his job were just the first chapter in an extraordinary saga. Kutaragi still had many challenges ahead, especially as the PlayStation project began to take shape. But at that moment, in the mid-1980s, it was clear to a select few within Sony that Ken Kutaragi was different – ​​and that, with the right support, he could change everything.

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4. Nintendo’s betrayal and the birth of the PlayStation

The history of video games is full of defining moments, but few events have had as profound and symbolic an impact as the split between Sony and Nintendo in the early 1990s. What began as a promising technology partnership between two Japanese giants turned into a historic corporate betrayal – and, ironically, it was this moment of humiliation that gave rise to one of the most important consoles in history: the PlayStation . In this part of our special report, we’ll delve deeper into the behind-the-scenes of this complex and revealing story, understanding how an unexpected split rewrote the future of the video game industry.

The beginning of the Sony-Nintendo partnership

In the 1980s, Nintendo reigned supreme in the world of video games. With the overwhelming success of the Famicom (NES) and later the Super Famicom (Super Nintendo), the Japanese company established itself as the undisputed leader in home electronic games. At the same time, Sony was already a technology giant, known for its consumer electronics products such as the Walkman, Trinitron TVs and high-quality audio systems. However, Sony still had no significant presence in the console sector.

It was in this scenario that an opportunity for cooperation between the two companies arose. Nintendo sought to evolve the Super Nintendo to make it compatible with a new emerging digital media: the CD-ROM . Optical media promised far greater storage capacity than traditional cartridges and lower production costs, in addition to enabling richer audio and video experiences.

Since Sony already had a strong grasp of CD technology and had been involved in the creation of the standard alongside Philips, it seemed natural that it would be chosen as a partner to develop the Super Nintendo CD-ROM accessory. The idea was that the new peripheral would allow the playback of CD games, extending the life of the console and offering a new range of experiences to players.

The SNES-CD project and the controversial agreement

The partnership between Sony and Nintendo aimed to develop a hybrid system, called the SNES-CD (or PlayStation X, in its early stages). The plan involved two products: a CD-ROM accessory that would connect to the original Super Nintendo and a standalone console, developed by Sony, that would combine cartridge and CD, with full compatibility with Nintendo games. This console would be called the “Play Station”, separated into two words.

However, there was a clause in the contract that would cause Nintendo great discomfort: Sony would have control over all CD games released for the accessory . This meant that Big N would have to give up part of the control it had always held over its platform, handing Sony a considerable share of the publishing power – something that directly contradicted Nintendo’s core philosophy.

At first, this detail was ignored or downplayed, as the focus was on getting the project up and running quickly. Sony, led by Ken Kutaragi on the technical side, dove headfirst into hardware development. Prototyping was done, demos were prepared, and everything indicated that the official announcement was imminent.

Public humiliation at CES 1991

The bombshell dropped during the 1991 Consumer Electronics Show (CES) , one of the world’s largest technology events. Sony took the stage and enthusiastically announced its partnership with Nintendo to launch the Super Nintendo CD-ROM accessory, as well as the new hybrid console. The presentation was received enthusiastically by the public and the press, who anticipated a technological leap in video games.

However, what happened the next day was one of the most shocking moments in the history of the industry.

Without any prior notice to Sony, Nintendo took to the stage at the same fair and announced, in a bombastic way, a new partnership for its CD-ROM player – not with Sony, but with Philips , Sony’s main competitor in optical media technology.

This drastic change of plans was kept completely secret, even within Nintendo itself. The decision came directly from the company’s then president, Hiroshi Yamauchi , who was unwilling to accept the terms of the contract that gave Sony so much control over CD games. He preferred to break the agreement with Sony abruptly, believing that Philips would be a more “obedient” and less ambitious partner.

The result was catastrophic for the relationship between the two companies. Sony was publicly humiliated on one of the biggest stages possible. All the trust placed in the project was shattered in front of the cameras, and Sony’s reputation as a reliable partner was questioned by many. Internally, Sony executives were furious. Ken Kutaragi was blamed by some for the embarrassment, as he was the technical face behind the initiative.

Give up or fight?

Faced with this public betrayal, Sony was at a crossroads. It could simply abandon the project, shelve the console prototype, and pursue its path in the electronics and traditional entertainment business. Or it could turn the insult into motivation, and prove to Nintendo – and the world – that it was ready to enter the market on its own.

That’s when the leadership of Sony president Norio Ohga and the tireless spirit of Ken Kutaragi shone again . Instead of backing down, they made one of the boldest decisions in the history of modern technology : transforming the prototype developed for Nintendo into an independent console, completely controlled by Sony .

This would be the true birth of the PlayStation , no longer as a complement to the Super Nintendo, but as a standalone product, a new gaming platform capable of competing directly with Nintendo and Sega.

The split with Nintendo not only hurt Sony’s pride, it also fueled its sense of revenge and competitiveness. Kutaragi was reassigned to the company’s music division, where he would have more freedom to continue his work away from the conservative eyes of hardware executives. There, he began developing the new console, now called the PlayStation , based on the earlier prototype.

The new strategy was clear: build a CD-ROM-based console, with a focus on 3D graphics, accessibility for developers and a competitive cost . It was a completely different approach from that of Nintendo, which continued to bet on cartridges and total control of its platform.

When it finally launched in Japan in 1994 and the rest of the world in 1995, the PlayStation proved to be a fitting response to the betrayal it had suffered. It didn’t just enter the market – it dominated it. With over 100 million units sold, the first PlayStation became the most successful console of its generation and ushered in a new era of digital entertainment.

Nintendo’s decision to break with Sony can be considered, with the benefit of hindsight, one of the greatest strategic mistakes in video game history. By trying to maintain total control over its platform, Nintendo created the biggest competitor it could face . Sony, in turn, turned humiliation into fuel and, through strategic planning, technical expertise and innovation, ushered in a new era in the video game industry .

The split between Nintendo and Sony was not just a business dispute. It was the starting point for a revolution. The birth of the PlayStation symbolized the arrival of a new player – mature, bold and technologically superior – that would set the standards for the future of video games.

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5. SONY is rejected by SEGA

After the humiliating split with Nintendo in the early 1990s, Sony found itself facing one of the most delicate moments in its corporate history. It had a promising console project based on CD-ROM technology, which until then had been developed to function as a complement to the Super Nintendo, and now it had to decide whether to shelve that dream or whether the company would take the boldest step of its existence: to enter, on its own, an extremely closed market dominated by giants. At this critical moment, an alternative emerged – to form a new partnership, this time with Sega , Nintendo’s main rival and a veteran in the video game market. However, what could have been a powerful union ended up becoming yet another rejected opportunity , and this refusal would further reinforce Sony’s determination to go it alone. This part of the story is essential to understanding why and how the PlayStation became a reality.

SEGA in the early 90s: a mix of success and pressure

To understand the context of Sega’s rejection, it is necessary to understand the position it occupied at that moment in the history of video games. Sega had become Nintendo’s greatest rival thanks to the success of the Mega Drive (or Genesis, in the US), launched in the late 1980s. With an aggressive marketing campaign, a focus on games aimed more at teenagers and charismatic mascots like Sonic, the company managed to conquer a significant share of the Western market, especially in the United States, where the Genesis even surpassed the Super Nintendo at certain times.

However, despite the commercial success of the Mega Drive, Sega faced a series of internal challenges. The company was divided between its operations in Japan and the United States, and this division created conflicts in strategy and vision of the future. While Sega of America, led by Tom Kalinske , was more aggressive, dynamic and focused on the Western consumer, the Japanese parent company was more conservative, centralized and rigid. This conflict between the two visions of the company directly affected the planning of the company’s next steps in the console market.

In addition, Sega was preparing for the launch of its new console, the Sega Saturn , which would be its greatest asset for the fifth generation of video games. However, the development of the Saturn did not proceed smoothly. Sega insisted on adopting an extremely complex and difficult-to-program hardware architecture, aiming to compete with the graphical advances of arcades. This caused delays, development difficulties and internal uncertainty about the viability of the project.

It was in this tense scenario that Sony approached Sega , shortly after being betrayed by Nintendo.

The attempted partnership between Sony and Sega

Still reeling from Nintendo’s public betrayal at CES 1991, but convinced that the technology it had developed had potential, Sony sought a new ally. The logic was simple: if Nintendo had closed its doors, why not join forces with its biggest rival? Sega, with years of gaming experience and a consolidated presence in the market, could be the ideal partner to continue the project of the console with a CD-ROM drive.

Several historical sources, interviews, and corporate documents reveal that Sony and Sega did, in fact, discuss a possible collaboration. In some versions, the meetings took place in both Japan and the United States. Sony’s proposal was clear: to work together on the development of a new, next-generation console, leveraging Sega’s expertise in popular games and brands, and Sony’s expertise in hardware, sound, digital media, and optical technologies.

Ken Kutaragi, already neck-deep in video game technology development, is said to have led some of these technical discussions. On Sony’s side, expectations were high: with the failure of the alliance with Nintendo, there was hope that Sega would embrace the opportunity to create a more powerful, CD-ROM-based console with robust support from third-party developers.

Why did Sega say no?

Despite the promising potential of the alliance, Sega’s response was a resounding “no .” And to this day, the exact reasons for this refusal continue to be debated by historians and industry experts. There are several versions of what happened behind the scenes of this failed negotiation, and all of them reveal important nuances about the internal conflicts and corporate arrogance of the time.

Version 1: Japanese arrogance

One of the most popular versions, reported by former Sony and Sega employees, is that Sega Japan executives simply did not believe that Sony could compete in the video game market . To them, Sony was just an electronics company, with no history in game development, no established franchises, no relationships with developers and therefore no “right” to participate in the industry. This conservative and arrogant view, typical of dominant companies in closed markets, would have prevented any real chance of collaboration.

Version 2: Sega of America’s distrust

Another narrative, attributed to then-Sega of America CEO Tom Kalinske , claims that Sega’s American division seriously considered a partnership with Sony , seeing great potential in it. However, executives at the Japanese parent company blocked the initiative , fearing that they would lose control over the design and direction of the new generation of consoles. According to this version, Kalinske vigorously advocated for the alliance, but was ignored by Tokyo.

Version 3: Technical and visionary divergences

There are also reports that technical and philosophical differences between the teams at the two companies made it difficult to advance the negotiations. While Sony wanted to bet on a simple, efficient architecture based on CD-ROM, Sega insisted on a platform more focused on raw graphics performance, with multiple processors and greater complexity. This lack of alignment on the technical path forward was reportedly a decisive factor in ending the talks.

“Let’s do it ourselves”

After yet another disappointment, Sony could easily have given up on the gaming market. After all, it had been rejected by the two biggest powers in the industry, and it still carried the distrust of many internal executives who considered video games a risky venture and unworthy of the brand’s prestige.

However, it was precisely this new rejection that served as the definitive catalyst for the decision to move forward, alone . Ken Kutaragi , with the continued support of Norio Ohga , found space within Sony Music to continue developing the project that would become the PlayStation . This relocation was strategic: away from the conservative eyes of the hardware division, Kutaragi’s team was able to work with more freedom, creativity and autonomy.

More than that, Sega’s refusal only reinforced Sony’s conviction that there was a huge opportunity being overlooked by the established companies. Both Japanese giants were stuck in old paradigms: they insisted on cartridges, tightly controlled their platforms, and made life difficult for third-party developers. Sony, on the other hand, was willing to do the opposite.

If Nintendo’s betrayal was the trigger for Sony’s entry into video games, Sega’s rejection was the seal of commitment . From that moment on, the company decided to bet all its chips on the PlayStation project . It would be built from scratch, on its own terms, with a new philosophy: ease of development, open support for studios, competitive prices, and a focus on digital media with large storage capacities .

Sega’s rejection, therefore, was not a failure – it was a lesson. Sony learned that the companies that dominated the market were blinded by their own arrogance . And it understood that there was room for a new proposal, more inclusive, modern and technological.

This unwavering determination would pay off. When the PlayStation finally launched, it didn’t just compete with Sega and Nintendo—it surpassed both in popularity, sales, and influence. And it all started with two doors closing… and the bold decision to build a new road.

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6. Risks and innovations in the development of the first PlayStation

The birth of the first PlayStation wasn’t just the beginning of a new generation of video games – it was the result of a sequence of events driven by boldness, technical genius and, most importantly, resilience in the face of rejection. After Nintendo’s public betrayal and Sega’s categorical refusal to collaborate, Sony decided to risk everything . This decision, which might have seemed insane at the time, kicked off the development of one of the most revolutionary consoles in history. In this chapter of Revolution Arena ’s special feature , we’ll explore in depth how the first PlayStation was created, from its secret prototypes to the design decisions that defined the future of gaming, such as the strategic adoption of 3D graphics.

The PlayStation Seed

It all started with a prototype. Still sheltered under the umbrella of Sony’s audio division, Ken Kutaragi – now under the protection of the company’s president, Norio Ohga – began working almost clandestinely on the idea of ​​creating a stand-alone console , using as a basis the knowledge acquired during the development of the CD-ROM player for the Super Nintendo. The failure of the partnership with Nintendo did not eliminate the potential of the project. On the contrary, the technological basis developed still had value – especially the focus on digital media , which promised to become the future of interactive entertainment.

Kutaragi knew he couldn’t follow the path taken by Nintendo and Sega, which still relied on cartridges or complex architectures with multiple processors. He wanted to create a modern, affordable and efficient console , with an architecture focused on optimized performance, low cost and ease of programming. And this is where a key decision comes in: the choice of a 32-bit RISC processor as the core of the future machine.

The combination of the RISC processor with the CD-ROM

The first prototype of what would become the PlayStation was built based on a RISC (Reduced Instruction Set Computing) architecture , which prioritized simple and fast instructions, allowing high performance with lower resource consumption. Unlike CISC processors (such as those used in many computers at the time), RISC was leaner, more stable and ideal for real-time applications such as games.

The decision to use a 32-bit RISC processor was a game-changer. It made the console more powerful than any of its direct competitors in the early 1990s. This processor would be responsible for handling the calculations needed for three-dimensional graphics, something still very rare and unexplored in home video games at that time.

Along with this, Kutaragi chose to exclusively adopt CD-ROM as the main media , completely abandoning cartridges, unlike Nintendo, which still insisted on this format even with the launch of the Nintendo 64, years later. The CD-ROM offered a series of advantages that seemed irresistible to those who thought about the future:

• Much larger storage capacity (up to 650 MB versus the few MB of a cartridge);
• Significantly lower production cost;
• Possibility to include full motion videos, high quality soundtracks and much more content in games;
• Ease of reproduction and duplication for mass distribution.

By combining CD-ROM technology with a high-performance RISC processor, Kutaragi was planting the seeds of a revolution. Even so, there was a lot of resistance to the project within Sony itself. Many top executives were not happy about the company’s entry into a market considered “childish”, “unpredictable” and “volatile”.

Norio Ohga: The Shield and the Bridge

What kept the project alive was the decisive role of Norio Ohga , president of Sony. More than an executive, Ohga was an entertainment enthusiast and a staunch advocate for innovation. His background as a musician and his sensitivity to cultural changes allowed him to see the potential of video games not just as a game, but as a form of art and digital expression , still in development.

Ohga believed that if Sony wanted to be a leader in the entertainment market of the future, it needed to enter the world of video games . He personally invested in Kutaragi’s vision, providing political protection, financial resources and autonomy for the small team that was beginning to shape what would become the first PlayStation.

Thanks to Ohga, a new division was created within Sony, called Sony Computer Entertainment (SCE) , with complete operational independence. This allowed Kutaragi and his team to develop the console without interference from the more conservative sectors of the company. It was the formal and structured birth of a new front for Sony – and a clear message that the company was truly willing to compete on equal terms with Nintendo and Sega.

Why invest in 3D graphics?

In the early 1990s, 2D graphics still reigned supreme. Sprite-based games dominated consoles and arcades, offering colorful visuals, fluidity, and familiarity to players. However, Kutaragi believed that the future lay in 3D graphics , and Sony’s move in this direction was no accident—it was an extremely well-founded strategic decision.

Three factors contributed to this choice:

1. The technological vanguard in arcades

SEGA, with its Virtua Fighter released in 1993, had demonstrated that three-dimensional graphics could work in fighting games, a very popular genre at the time. The positive reception of the game by the Japanese public was a clear sign that there was an appetite for more immersive and modern experiences .

2. Technical capability of RISC + CD-ROM architecture

The architecture chosen by Kutaragi was perfectly suited to real-time polygon calculations. This allowed the PlayStation to run three-dimensional environments with greater speed and stability than its competitors. In a scenario where everyone still worked mostly with pixels and side-scrolling, the PlayStation stood out as a generational leap.

3. Leadership opportunity

Nintendo and Sega were still undecided. Sega was preparing the Saturn, but with a confusing and difficult-to-program architecture. Nintendo, on the other hand, was still betting on 2D and cartridges. Sony saw the opportunity to occupy the vacant space of technological leadership , offering a console that would not only compete with the existing ones, but set the standards for the future .

This bold vision was immediately embraced by many independent developers and studios who were tired of the limitations imposed by traditional platforms. With more space for content, greater technical freedom and user-friendly tools, PlayStation quickly became the dream platform for many game creators.

Support structure

Another key aspect of the success of the first PlayStation’s development was Sony’s efforts to attract third-party developers . Unlike Nintendo and Sega, which imposed restrictive contracts and rigid technical requirements, Sony decided to take a completely different approach: opening its doors, offering affordable development kits and making it as simple as possible to create games for its new platform.

Sony provided SDKs (Software Development Kits) based on standard PCs, with clear documentation and efficient technical support. This created a welcoming and empowering environment for small studios and large companies alike. The strategy worked: even before the console’s official launch, Sony had already established partnerships with more than 250 developers around the world . Add to that the 32-bit RISC processor, CD-ROM-based media, focus on 3D graphics, and inclusive business model, and it was pretty clear that the PlayStation was ready to debut.

But what’s most impressive is that it all came about through a series of rejections , out-of-the-ordinary vision , and the courage to break with the status quo . Indeed, the development of the first PlayStation was an extreme exercise in risk, innovation, and independence.

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7. How Sony won over developers

For a console to be successful in the video game market, it is not enough to simply be technically superior or have a strong brand behind it. The real difference lies in its gaming ecosystem – and this depends directly on the ability to attract and retain partner developers . From the beginning of the project for the first PlayStation , Sony understood that if it wanted to truly compete with Sega and Nintendo, it needed to break away from the traditional model and create an attractive, accessible and friendly environment for game creators . This innovative mindset was decisive in transforming the PlayStation into a global phenomenon. In this chapter of the Revolution Arena special report , you will understand how Sony won over 250 developers even before the console was officially launched, and why this strategy changed the gaming industry forever.

The first strategic move: the purchase of Psygnosis

Few people know this, but Sony’s first major move to ensure the success of the PlayStation wasn’t technical – it was business-related. Before the console was even ready to hit stores, the company decided to buy a game development studio , with the aim of ensuring a quality portfolio at launch and, at the same time, showing the market that it was taking video games seriously.

The studio chosen was Psygnosis , a British developer founded in 1984 and known for its striking visual identity and graphically-intensive games such as Shadow of the Beast and Lemmings . Based in Liverpool, Psygnosis had built a solid reputation for creating stylized and ambitious games for computers such as the Amiga and Atari ST.

The acquisition took place in 1993, a year before the official launch of the PlayStation in Japan, and represented a watershed moment . With it, Sony not only secured a pipeline of quality games for the launch of its console, but also acquired an experienced creative team, which would soon be tasked with developing some of the most iconic titles of the first generation of PlayStation – among them the acclaimed Wipeout , a futuristic racing game that would become a symbol of the new console.

Furthermore, the acquisition of Psygnosis was a clear signal to the market: Sony wasn’t just “trying” the gaming industry – it was committed to it for the long haul . Independent developers who had previously been skeptical about the project began to pay close attention. After all, if a company the size of Sony was investing in studios and internalizing production, something big was coming.

Sony’s innovative philosophy: freedom, access and low cost

Historically, companies like Nintendo and Sega have had an iron fist in their relationships with third-party developers. Nintendo, in particular, maintained a highly restrictive model: it required exclusivity in many contracts, limited the number of games a studio could release per year, and imposed strict rules on game content. In addition, developing for its platforms involved high costs and little creative flexibility.

Sony, on the other hand, decided to do things differently . Under the leadership of Ken Kutaragi and the newly formed Sony Computer Entertainment (SCE) division, the company adopted an open-door, developer-friendly policy . This approach involved several practical initiatives that, together, created the ideal ecosystem to attract companies of all sizes:

1. Affordable development kits

One of Sony’s greatest strengths was to offer affordable and easy-to-use development kits . PlayStation SDKs (Software Development Kits) were designed to run on standard computers, with well-documented tools, active support, and competitive pricing. This was in direct contrast to competitors’ solutions, which often required expensive dedicated machines and programming in complex proprietary languages.

2. Clear documentation and technical support

Sony knew that many studios were small, with lean teams and limited resources, so it provided detailed technical documentation , practical examples, and a direct line of support with SCE engineers. This structure reduced learning curves and encouraged developers to experiment with new hardware without fear.

3. Total creative freedom

Unlike the censorship imposed by other companies, Sony allowed studios to explore more mature, bold, and diverse themes . This resulted in a huge variety of genres in the PlayStation catalog, from psychological horror games like Silent Hill to epic RPGs like Final Fantasy VII , and even experimental experiences like Parappa the Rapper . This creative freedom was a breath of fresh air for developers tired of traditional constraints.

4. Reduced media cost

While Nintendo and Sega were still relying on cartridges – expensive to manufacture and with little storage capacity – Sony adopted the CD-ROM as its standard media. In addition to being much cheaper to produce, the CD offered more space for rich content, such as orchestrated soundtracks, high-definition graphics and cinematic cutscenes. This not only increased the appeal of games, but also allowed for better profit margins for the studios.

5. Relationship of partnership, not of domination

Sony treated developers as business partners , not subordinates. This collaborative approach set a new standard for relationships in the gaming industry. The company listened to developers’ needs, adjusted processes when necessary, and fostered mutual growth—a stance that soon paid off.

The results: 250+ developers before launch

Sony’s efforts paid off quickly and impressively. Even before the official launch of the PlayStation , the company had already partnered with over 250 developers , including some of the biggest names at the time:

• Capcom (Street Fighter, Resident Evil)
• Konami (Metal Gear, Castlevania)
• Namco (Tekken, Ridge Racer)
• Square (Final Fantasy)
• Enix , Taito , Bandai , Acclaim , Electronic Arts and many others.

This represented a historic turning point in the industry . For the first time, a newly launched console was coming to market with massive support from studios of all sizes , offering a rich, diverse library capable of catering to all types of players.

What’s more, PlayStation has managed to attract Western developers , something that was rare until then, in a market that was still heavily centered on Japan. Thanks to Psygnosis’ strategic presence and SCE’s operations in the United States and Europe, Sony has created a direct bridge with the West, bringing together talent, independent studios and major publishers.

Sony has set the new rules of the game

Sony’s approach to developer engagement didn’t just drive PlayStation’s early success—it transformed the industry itself . From then on, no platform could ignore the importance of building healthy, transparent, and rewarding relationships with game creators . The era of suffocating contracts and total control began to fade, replaced by a more collaborative and sustainable approach.

This friendly ecosystem, combined with the console’s technical power and Sony’s strategic vision, paved the way for its resounding success. Within a few years, PlayStation would become the best-selling console of its generation , surpassing 100 million units sold and solidifying a global fan base – all supported by one of the richest and most influential game libraries in gaming history, to this day.

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8. The launch of the PlayStation and the direct fight with the Sega Saturn

With the design complete, a highly skilled technical team in place, and over 250 developers lined up to launch games on the new platform, Sony was ready to put the PlayStation on the shelves. But as in any competitive industry, especially in the video game world, success is not guaranteed by technical quality or internal enthusiasm. You have to win on the battlefield of the marketplace , where launch decisions, pricing strategies, and consumer perception define the winners. That’s exactly what happened with the PlayStation when it launched—first in Japan, then worldwide—and went head-to-head with the Sega Saturn , its main rival in the fifth generation of consoles. The outcome of this battle not only marked Sony’s definitive rise as an industry giant, but also redefined business strategies in the video game industry forever.

Release in Japan

The official launch of the PlayStation in Japan took place on December 3, 1994 , and marked the beginning of a new era for Sony and the home console universe. Around the same time, Sega also launched the Sega Saturn , on November 22, 1994. The clash was inevitable: two fifth-generation consoles, manufactured by powerful Japanese companies, betting on new technologies and fighting for the same space in a highly competitive market.

At the beginning of the competition, the Saturn came out ahead , driven by the success of Virtua Fighter , a virtually perfect port of Sega’s own arcade hit. The game was released alongside the console and became a true phenomenon among Japanese fans, especially those who frequented arcades. In the first few months, the Saturn sold approximately 500,000 units in Japan , almost double what the PlayStation managed in the same period.

Sony, however, did not panic. From the beginning, its strategy was to think long-term , build a solid consumer base and expand its game library with diverse titles. While the Saturn relied on its arcade pedigree and fighting titles, the PlayStation came with a more diverse proposal focused on three-dimensional and cinematic experiences. And this difference would begin to become evident as the months went by.

War begins in the United States

Despite the importance of the Japanese market, Sony knew that the real war would be fought in the American market . In the 1990s, the United States represented the largest and most lucrative territory for video games in the world. Winning in Japan was important, but conquering America meant dominating the global industry .

Sony carefully prepared the groundwork for the PlayStation’s U.S. launch, scheduled for September 9, 1995. During this time, the company studied the moves of its competitors, especially those of Sega of America , led by Tom Kalinske , a seasoned executive who had helped popularize the Sega Genesis in the West.

Sega’s strategy was simple but risky: to bring forward the Saturn’s launch in the US to gain a competitive advantage. The company announced at E3 1995 that the Saturn was now available in select stores, priced at US$399 . The idea was to catch Sony off guard and win over the public before its rival arrived.

But Sony was ready. At the same event, executive Steve Race , representing Sony Computer Entertainment America, took the stage, walked up to the microphone and said just one word:
“$299.”

This moment went down in history as one of the most iconic moments of E3 and as a death blow to the Saturn . The announcement that the PlayStation would launch for $100 less than the Sega Saturn instantly resonated with consumers, developers, and the specialized press. The public responded enthusiastically: this was the console with the best technology, the growing library of games, and now the best price . The market balance began to tip decisively in Sony’s favor.

Pricing strategy

The importance of Sony’s pricing strategy cannot be understated. While the Saturn tried to justify its value with a Virtua Fighter port and complex technical specifications, the PlayStation positioned itself as affordable, modern, and friendly to developers and gamers alike .

Reducing the price by $100 was a strategic move that had multiple effects:

• It attracted casual consumers , who were willing to try a new console if it cost less;
• It put financial pressure on Sega , which was already facing inventory and distribution problems;
• It won over developers , who saw the rapid growth of the PlayStation installed base as an irresistible commercial opportunity;
• It boosted sales at launch , creating a strong base in the first few months.

While the Saturn suffered from limited stocks , few partner stores and a restricted game line-up , the PlayStation arrived with everything: bold advertising campaigns, efficient distribution and titles such as Ridge Racer , Battle Arena Toshinden and Wipeout , which quickly became favorites among gamers.

Market reaction and the irreversible turnaround

The price difference combined with the variety of games began to have an effect immediately. Within two days of the PlayStation’s launch in the United States, the console had already sold more units than the Saturn had during its entire initial window. The numbers were clear: the public had made its choice.

The specialized media also quickly positioned themselves in favor of the PlayStation. Reviews praised not only the three-dimensional graphics, but also the gameplay, ergonomic controls and the promise of a new generation of interactive experiences. The name “PlayStation” began to become synonymous with innovation, quality and the future.

Meanwhile, Sega was facing internal and external criticism . Many retailers were upset with the Saturn’s surprise launch, as they did not receive enough units to sell. This created resentment that would negatively impact support for the console in the months that followed. Additionally, game development for the Saturn was becoming more difficult, and studios began to migrate en masse to Sony’s platform.

The beginning of the end for Saturn

By the end of 1995, the picture was clear. Sony had surpassed Sega in sales, market appeal, and developer support. Nintendo had not yet entered the fifth generation – the Nintendo 64 would not be released until late 1996 – which gave Sony a crucial time advantage to establish itself as the market leader .

The Saturn, meanwhile, began to slowly wither away. While it still had a loyal fan base and good titles in its catalog, such as Nights into Dreams and Panzer Dragoon , it could not compete with the pace and impact of the PlayStation’s rapidly growing library of games.

The fatal blow would come with the arrival of Final Fantasy VII in 1997, a game originally planned for the Nintendo 64, but which was released as a PlayStation exclusive thanks to the CD media and the support of Square. With it, the PlayStation consolidated itself as the new industry standard.

Sony defeated Sega with strategy, vision and execution

The confrontation between the PlayStation and the Sega Saturn was a turning point in the history of video games . More than a dispute between two consoles, it was a clash of visions: while Sega still relied on the legacy of arcades and a complex and elitist architecture, Sony brought innovation with simplicity, consumer focus and strategic partnerships with developers .

The decision to price the PlayStation at $299 , combined with a planned launch, effective distribution, and a memorable advertising campaign, was instrumental in establishing Sony as the new industry leader . The company didn’t just win the battle against Saturn—it redefined the rules of the game forever.

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9. The Nintendo 64 arrives too late

If there’s one company that shaped video games as we know them, it’s Nintendo . Innovative, creative, traditional, and a creator of generations of gamers, the Big N dominated the console scene during the 1980s and part of the 1990s. However, even giants stumble. And that’s exactly what happened with the Nintendo 64 , a technically advanced console that marked an era with the release of the revolutionary Super Mario 64 , but which ended up arriving too late to threaten the dominance of the PlayStation . In this chapter of our special Revolution Arena article, we’ll take an in-depth look at how and why Nintendo, despite having a powerful product, was unable to stop Sony’s meteoric rise in the world of video games.

Expectations are high for the launch of the Nintendo 64

After the overwhelming success of the Super Nintendo , anticipation for Nintendo’s next console was huge. Fans around the world eagerly awaited a next-generation machine capable of bringing three-dimensional graphics, larger worlds and immersive experiences never before seen. Nintendo promised just that with the Nintendo 64 , which would come equipped with a powerful 64-bit processor – something unheard of in the home console market at the time.

However, the Nintendo 64’s launch was hit by a series of delays . Initially scheduled for 1995, the console only hit the market in June 1996 in Japan and September 1996 in the United States – nearly two years after the PlayStation’s launch in Japan, and more than a year after Sony’s console had already established itself in the United States and Europe. This delay was fatal. In an industry where timing is crucial, the Nintendo 64 was launched when Sony had already won over the minds and wallets of millions of gamers.

Despite this, the Nintendo 64 did not go unnoticed. Quite the contrary. Its launch was surrounded by enormous hype and expectation, driven by a game that would become one of the most revolutionary in history : Super Mario 64 .

Super Mario 64: an undeniable phenomenon

Super Mario 64 was a turning point for platformers, and indeed for video games as a whole. Developed with a completely new vision by Shigeru Miyamoto , the game brought the iconic plumber into a fully explorable 3D environment, with a dynamic camera, advanced physics, and a level of freedom of movement that had not been seen in any other game of its kind.

Critics hailed Super Mario 64 as a milestone in the new era of video games , setting a new standard for 3D game design. Gamers responded enthusiastically, with lines forming outside stores to purchase the console along with the new game, which accounted for nearly all of the Nintendo 64’s initial sales.

However, even with such an impressive launch, the impact of the Nintendo 64 was quickly neutralized by one determining factor: the PlayStation was already everywhere .

The timing difference: two years or an eternity?

By the time the Nintendo 64 hit shelves, roughly two years after Sony’s console launched, the PlayStation had already:

• Earned industry trust with over 250 developer partners;
• Established a massive installed base of players worldwide;
• Released dozens of popular games , including hits such as Resident Evil , Tekken , Crash Bandicoot , Tomb Raider , Final Fantasy VII (coming soon), Gran Turismo , Metal Gear Solid , among many others.

This consolidated ecosystem created a kind of “market gravity.” Developers who had initially hesitated to invest in Sony were already committed to the platform. Stores already had inventory, advertising, infrastructure, and a commercial relationship with Sony Computer Entertainment. Consumers, in turn, already recognized PlayStation as synonymous with modern games and next-generation experiences.

Given this, the late arrival of the Nintendo 64 positioned it as a “brilliant latecomer” : technically powerful, with quality games, but with a much higher barrier to entry to compete in a market that had already chosen its leader.

The cartridge was a very costly decision

Another decisive factor in Nintendo’s loss of competitiveness was its decision to continue using cartridges as standard media . The company’s justification was plausible: cartridges had virtually no loading time , were more physically durable and more difficult to pirate. However, the decision ended up backfiring.

While the PlayStation used cheap CD-ROMs with capacities up to 650 MB , the Nintendo 64 used cartridges of only 4 to 64 MB . This meant:

• Less space for high resolution graphics;
• Severe limitations on soundtracks (no full voices, CD songs or FMV videos);
• Much higher production costs, passed on to the consumer;
• Lower profit margin for studios;
• Difficulty porting cross-platform games to Nintendo’s console.

Because of these limitations, several major studios have opted to release their games exclusively on the PlayStation . The most significant of these decisions was that of SquareSoft , which switched from its historic partnership with Nintendo and released Final Fantasy VII on the PlayStation – one of the biggest hits of the generation.

The numbers don’t lie: PlayStation’s advantage was brutal

At the end of both consoles’ life cycles, the numbers clearly illustrated Sony’s supremacy:

• PlayStation : over 100 million units sold worldwide.
• Nintendo 64 : Approximately 32 million units sold globally.

This represents a difference of more than 68 million units , a commercial gap that Nintendo was never able to recover in that generation. And it is worth remembering: this performance was achieved by Sony in its debut in the console industry , while Nintendo was already a veteran, with almost two decades of experience in the sector.

Furthermore, the PlayStation library had over 4,000 games , in contrast to the approximately 390 official titles of the Nintendo 64. This huge difference in variety and volume also influenced players’ purchasing decisions.

Nintendo in the bubble of its isolated strategy

Another factor that contributed to the Nintendo 64’s defeat was Nintendo’s own strategic stance. The company maintained its traditionalist policy, tightly controlling the games released for its console, imposing barriers for developers and maintaining a closed environment. Meanwhile, Sony embraced the world with open partnerships, low costs and creative freedom .

This difference in mindset created a cultural and commercial distance between the two consoles. The PlayStation felt innovative, modern, cinematic, and global . The Nintendo 64, while technically powerful, felt limited, expensive, childish, and local .

This perception had a direct impact on the teenage and adult audience, which represented a growing share of the market. While Nintendo was still strongly associated with children, PlayStation became the natural choice for those seeking more immersive and mature experiences.

The PlayStation shone alone in an already dominated sky

The Nintendo 64 was, without a doubt, a very remarkable console, which brought absolutely unforgettable games that are still revered today, such as Super Mario 64 , The Legend of Zelda: Ocarina of Time , GoldenEye 007 , Banjo-Kazooie , among others. Nintendo’s video game console innovated with a revolutionary analog control and delivered ultra-impressive technical experiences for its time; but, unfortunately, it arrived too late , and, in addition, it arrived accompanied by considerably mistaken commercial decisions , and ended up being swallowed up by the overwhelming force of the PlayStation , which reinvented the industry and became the new global standard for video games.

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10. How PlayStation transformed the image of video games from children’s toys to global entertainment

When Sony launched the PlayStation in Japan in 1994 and the rest of the world in 1995, few could have imagined that this console, created by a new company on the market, would radically change society’s perception of video games . Until then, home consoles were mostly seen as toys for children and teenagers, with games with colorful aesthetics, fantasy themes and a more arcade-style gameplay. Adult audiences, with rare exceptions, viewed video games with distrust or indifference.

But the PlayStation came to break paradigms. It didn’t just beat giants like Nintendo and Sega in a consolidated industry — it completely reconfigured the market , transforming video games into one of the most relevant forms of entertainment of the 21st century. In this special chapter of the Revolution Arena article , we will understand how the PlayStation managed to carry out this revolution , create a new generation of gamers and leave a legacy that remains to this day as one of the greatest technological and cultural turning points in recent history.

The evolution of the gamer audience

Before the PlayStation, video games were mostly considered an activity aimed at children and young people. Even with more complex titles on the Super Nintendo and Mega Drive, the visual language, stories and accessibility of the games still reinforced the idea that they were something for “children”. Nintendo , in particular, has always cultivated a family-friendly image, with characters like Mario, Donkey Kong and Kirby dominating the shelves.

Sony challenged this narrative from the start . The company knew that young people who grew up playing Atari and NES consoles were entering adulthood—and were ready for deeper, more mature, and more thematic experiences. The PlayStation was designed not just as a technical breakthrough, but as a cultural shift . Its industrial design, futuristic digital audio interface, and black-and-gray visual identity conveyed seriousness. It was a console for adults .

Most importantly, the PlayStation’s game catalog was carefully nurtured with titles that dealt with complex themes , had cinematic narratives, characters with emotional depth, and graphics that sought realism. Games such as Resident Evil , Silent Hill , Metal Gear Solid , Final Fantasy VII , Parasite Eve , and Legacy of Kain broke the barriers of children’s entertainment and positioned games as works of art , worthy of critical analysis, narrative discussion, and aesthetic appreciation.

This new paradigm brought with it a legion of adult gamers , who finally felt represented in a medium that, until then, seemed to have no space for their experiences. The PlayStation, therefore, matured the industry , paving the way for the explosion of gamer culture in the 2000s.

Cinematicity in games and the new language of interactive narrative

One of the pillars that supported this revolution was the advancement in the cinematic nature of games . The PlayStation, with its use of CD-ROM as its default media , allowed developers to insert video cutscenes, orchestrated soundtracks and full voice acting . This brought games closer to the language of cinema, creating a new type of experience: interactive storytelling .

Titles like Metal Gear Solid raised the bar by incorporating dense dialogue, complex character development, and plot twists worthy of a spy movie. Final Fantasy VII stood out for its emotional storyline, which dealt with themes such as identity, death, eco-terrorism, and existentialism — subjects previously unthinkable in a mainstream game.

With this, the PlayStation paved the way for video games to be respected as a legitimate form of art and culture , capable of telling stories as impactful as books, films or series. This change in perception helped games gain space in traditional media, in academic debates and in artistic awards, as would happen in the following decades.

Creating a new generation of gamers

With its mature approach, its more sober aesthetic and its library aimed at a wider audience, PlayStation helped create a new generation of gamers . They were no longer just teenagers looking for quick fun, but adults passionate about the interactive experience , willing to invest time, money and attention in rich, deep and immersive digital universes.

This new generation was made up of young people who grew up with the Super Nintendo, but who no longer felt represented by childhood adventures. They found in the PlayStation a space of belonging, intellectual and emotional challenge , and became the pillars of modern gamer culture. Many of these players became developers, journalists, content creators and industry entrepreneurs , feeding back into the cycle of innovation started by Sony.

PlayStation One: a symbol of global transformation

The impact of the PlayStation was not limited to the fifth generation of consoles. Its legacy extended throughout the following generations , directly influencing the design, business models, marketing strategies and technological evolution of the entire industry.

The PlayStation brand has become synonymous with video games worldwide . In many countries, including Brazil, it is common for any console to be mistakenly called “PlayStation”, even if it is from another brand — such was Sony’s presence and cultural dominance. This direct association between the name and the product is a very rare branding feat , achieved only by brands like Xerox, Velcro or Gillette.

Furthermore, the PlayStation redefined what was expected of a console: not just graphical power, but narrative depth, developer accessibility, a diverse library, and emotional appeal . The way games were built, marketed, and consumed was forever changed by Sony’s success.

The PlayStation was the first console to surpass the 100 million units sold mark , an unthinkable feat for a newcomer to the industry. It didn’t just match Nintendo and Sega—it surpassed them , completely redefining the game industry.

Sony’s success with PlayStation

It’s impossible to ignore how unlikely the rise of PlayStation was. Sony was a newcomer in an industry dominated by experienced titans. It had no iconic mascots, no storied franchises, no gaming heritage. And yet, in less than a decade, it had become the biggest force in the industry .

This victory was the result of a rare combination of strategic vision, technical daring, perfect timing, cultural sensitivity, and active listening to consumers and developers . Ken Kutaragi, Norio Ohga, and the team at Sony Computer Entertainment didn’t just create a console: they launched a revolution .

The PlayStation’s trajectory is unique, and it will be hard to repeat it under the same circumstances. The console was born out of corporate betrayal, faced internal and external skepticism, and yet reinvented an entire industry . Its impact was so profound that even its “competitors” ended up being influenced by its practices and philosophy.

Was the PlayStation a revolution?

Yes! The PlayStation has undoubtedly revolutionized the global entertainment market, and everything that has happened since its conception until the end of its life cycle has taught us some very clear lessons:

• True innovation requires courage to break patterns ;
• Actively listening to the market and creators can be more powerful than tradition ;
• Technology without vision is not enough – it requires purpose and cultural sensitivity ;
• Video games are not just toys, but vehicles for art, culture and storytelling .

The PlayStation was a cultural milestone . It paved the way for gaming to become the dominant form of entertainment in the 21st century — surpassing music and movies in terms of revenue and relevance. And it all started with an unlikely bet, made by a company that decided to believe in the next generation before anyone else .

Everything that the first PlayStation built lives on, not just in modern consoles, but in the way we think about games, how we play them, how we talk about them. The story of this console, the PlayStation, which was later renamed the PlayStation One, is the story of the coming of age of video games ; and ultimately, that story continues to be written, generation after generation, by its successors.