Reddit reviews Revolutionaries at Sony: The Making of the Sony Playstation and the Visionaries Who Conquered the World of Video Games
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That's not quite the full story. According to this excellent book, Nintendo stuck with cartridges simply so that all orders for game production had to come through them. They had final control over the entire production of SNES/N64 cartridges, giving them a much, much bigger profit margin than if they just sold licenses to develop and release games for their platform, like Sony did.