What if Sony never created the Playstation?

In 1989, Nintendo was teaming up with Sony to create a CD add-on for the Super Nintendo. However, the project was never finished, and Sony went and created the Playstation instead. So, what would have happened if Nintendo and Sony never teamed up? What would happen to Playstation classics such as Final Fantasy 7 and Metal Gear Solid? The way I see it, there are three possible scenerios on how gaming would have changed.

1. "The games never would have been created." With Sony out of the picture, it would only make sense for Konami and Square to continue making games for Nintendo, i.e. the N64. However, since the N64 was the last home console to utilize cartridges, it would not have the capacity to hold these games. So either these never would be made, or they would wait another generation to be made. Either way, both of these franchises would be close to dying.

2. "The games are made for the N64-DD." The N64-DD (Disc-Drive) was a commercial failure on so many levels. It was an add-on for the N64 that would alow CDs to be played on the console. But it was only released in Japan. But if Konami and Square wanted to stick with Nintendo, they would have probably made the games for the DD. With 3rd party support, the add-on probably would have succeeded, leading to a whole slew of Nintendo games that were cancelled because the peripheral failed. The most famous of these games was Ocarina of Time. What would have happened if the game was on the DD instead? Would it have been as popular or beloved? It probably would not have been.

3. "The games are ported to the Sega Saturn." In my opinion, this is the most likely scenerio. The Saturn failed mainly due to poor 3rd party support. With two powerhouse games, maybe the system flourishes. And with the success of two straight consoles, Sega would be healthy financially. And keep in mind with no Sony, the Dreamcast would succeed also. So with no Sony, Sega very well may be the most powerful publisher today.

Of course this is all just speculation. It's impossible to know what would have happened if Sony didn't create the Playstation. I mean, would they still have created the PS2? Would Microsoft enter the race? Who knows...