History of Sony Computer Entertainment(early game console development)

At the Consumer Electronics Show in june 1991, Sony revealed to the world a video games console, which was joined with Nintendo. This SNES with the technology of a CD-ROM drive was a project driven by Ken Kutaragi, a Sony exclusive who came from its hardware engineering division. This was mainly Nintendo's chance to take a huge leap to a new world of multimedia but also a way for Kutaragi to show his company how important the games industry is and what can be achieved. Although the very day after Sony's announcement, Nintendo stated that it would be breaking its deal with Sony by partnering with Phillips instead.

First design of the playStation (SNES with a CD-ROM drive)

Sony's president Norio Ohga was enraged and humiliated. The decision was rather sudden but there was problems between the two companies for some time, like for example there was a agreement with over how revenue would be collected because Sony had proposed to take care of money made from the CD sales while Nintendo would collect from the cartridge sales and said that royalties would be organised later. when chris Deering who at the time was working at the Sony-owned Columbia Pictures said, "Nintendo went bananas, frankly, and said that we were stepping on its toll booth and that it was totally unacceptable." Nintendo and Sony just couldn't agree on terms and fell apart.

(Chris Deering is to present day head of the PlayStation business in europe.)