In the late ’80s, a young Sony engineer named Ken Kutaragi collaborated with Nintendo to develop the SNES's sound chip.
This collaboration laid the groundwork for the Sony PlayStation, a hybrid console that used high capacity CD-ROMs.
While Sony was unveiling the Play Station at CES 1991, Nintendo signed a secret deal with Philips, betraying Sony.
Nintendo's decision to break the handshake and stick with cartridges for the Nintendo 64 while Sony embraced CD-ROMs led to Sony dominating the console market with the PlayStation.