Squaresoft’s Push for CDs on the N64: A Lost Opportunity?

The Nintendo 64 is often remembered for its groundbreaking 3D graphics, iconic games, and enduring legacy. However, one of its most debated design choices was Nintendo’s insistence on sticking with cartridges instead of embracing CDs—a decision that ultimately led to a major rift between Nintendo and one of its biggest third-party developers, Squaresoft.

Recently resurfaced information from an interview with Venturebeat reveals that Squaresoft actively lobbied Nintendo to adopt CD technology for the N64, believing it was the superior format for the future of gaming. At the time, CDs offered vastly greater storage capacity, allowing for high-quality audio, full-motion video, and expansive game worlds—features that the cartridge format simply couldn't match. Squaresoft, known for its ambitious RPGs like Final Fantasy VI, saw this as a crucial opportunity to push the medium forward.

Nintendo, however, remained firm in its commitment to cartridges, prioritizing faster load times and lower piracy risks over storage concerns. This decision ultimately pushed Squaresoft toward Sony and the PlayStation, where it would go on to develop Final Fantasy VII, a title that became a defining moment in gaming history and a massive blow to Nintendo’s dominance.

Had Nintendo agreed to Squaresoft’s proposal, the N64’s library could have looked drastically different. Imagine Final Fantasy VII on a Nintendo console, alongside the likes of The Legend of Zelda: Ocarina of Time and Super Mario 64. Instead, the divide between Nintendo and Squaresoft lasted for years, only beginning to mend in the early 2000s.

While the N64 still produced legendary titles, the absence of major third-party RPGs left a gap in its library that Sony readily filled. This episode serves as a reminder of how a single hardware decision can reshape the gaming industry for decades to come.

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