A former PlayStation employee has shared new insights about the canceled console project between Sony and Nintendo during an interview published on February 4, 2025. The collaboration, which began in the late 1980s, was intended to create the SNES CD, a CD-ROM add-on for the Super Nintendo Entertainment System. However, the partnership fell apart in 1992 after Nintendo unexpectedly announced a deal with Philips, leaving Sony to repurpose its work into what would become the first PlayStation.

The former employee revealed that internal tensions arose because of disagreements over licensing and revenue sharing. According to them, Nintendo’s leadership was concerned that the original contract gave Sony too much control over games developed for the SNES CD format. This led to Nintendo’s decision to terminate the agreement and pursue an alternative partnership with Philips. The fallout reportedly left Sony frustrated but determined to salvage its investment, ultimately leading to the creation of the standalone PlayStation console.

Additionally, it was disclosed that Sony’s first-ever game development effort was tied to this project. Shuhei Yoshida, a prominent figure at PlayStation, confirmed that Sony had developed a space shooter prototype for the SNES CD during this period. This game never saw release but marked the company’s initial foray into game development.

The canceled collaboration is often regarded as a pivotal moment in gaming history, as it led to the emergence of Sony as a major competitor in the console market. These new details provide further context about how this failed partnership shaped the trajectory of both companies and the industry as a whole.