Nintendo lost to PlayStation for a combination of reasons. One major factor was Nintendo's decision to partner with Sony to enter the CD medium and the 32-bit era, but this partnership fell apart and Sony launched the PlayStation on their own . Sony had more financial and technological firepower, and they were able to offer better deals to third-party developers, leading many developers to switch to the PlayStation . Additionally, Nintendo made some strategic errors, such as sticking with cartridges for the N64 instead of CDs, which made it less appealing to third-party developers . Nintendo's focus on casual and handheld gaming also left them vulnerable to the rise of mobile gaming, which further impacted their market share . Overall, Sony's superior resources, partnerships, and strategic decisions contributed to their success over Nintendo in the console market.