To follow this up, Nintendo preferred Phillips, which partially owned the rights to the CD, largely due to their looser licensing agreements over Sony. Sony had finished the prototype “PlayStation” and demoed it at CES that year. The day after which Nintendo would disclose their partnership with Phillips and disband with Sony. Sony then redesigned the PlayStation with a new look and slightly newer hardware, and would release the PS1 in 1994. Nintendo lost out on a very large portion of the market share due to complications with designing and developing for the SoC powering the N64. As well as their decision to use cartridge based media instead of CDs