The SNES CD-ROM all started with Ken Kutaragi, a young engineer at Sony who’d later become known as the “father of the PlayStation.” Kutaragi struck a deal with Nintendo to create the sound chip for the Super NES—a decision he apparently made without the knowledge of Sony’s board of directors. The project was a success—the SNES’ sound hardware is one of the most widely praised aspects of the machine’s design—and for the next step in what was looking like a fruitful partnership between Nintendo and Sony, Kutaragi proposed that Sony be allowed to create a Super Nintendo that had a CD-ROM drive built in. Nintendo agreed.
The behind-the-scenes of this deal are mostly shrouded in Japanese corporate secrecy, but in late 2016, we got some rare insight into how it all went down—from one perspective, that is. Shigeo Maruyama, the former head of Sony Computer Entertainment, discussed it with
the Japanese site Denfaminicogamer,
translated by Nintendo Everything.
Kutaragi “was a strong advocate for pursuing CD-ROM support over cartridges,” Maruyama said. “But Nintendo wanted to stick to [cartridges] for games. CD-ROMs can take 10-15 seconds to load, after all. They probably didn’t think users would want to wait that long. But Kutaragi wouldn’t let up his arguments, so eventually Nintendo told him, ‘Alright. We don’t think it will be successful, but you can do your CD-ROM thing.’”
It was, by all accounts, Nintendo’s skepticism in the viability of CD-ROMs that caused it to give away too much in the contract it signed with Kutaragi. Sony got the rights to create and sell CD-ROM software that would run on the Super NES-compatible machine, which it called the “Play Station.” It wouldn’t have to pay Nintendo any royalties or get its approval for CD-ROM games. This meant that if developers and consumers did embrace CD-ROM gaming on the Super NES, Nintendo wouldn’t get a dime off any of those game sales—only the hardware sales.
Why would Nintendo allow this to happen? Maruyama said it was because Sony “explicitly told them we were going to focus on everything but video games.” In other words, Sony’s position was that it would make encyclopedias, home karaoke software, and other non-gaming applications using CD-ROMs, and leave all the gaming to Nintendo. But apparently this was not in the contract itself, and once the ink was on paper, Sony had carte blanche.
It’s also useful, to understand what was going on here, to look at how Sony was evolving in the late 1980s. As the decade dawned, Sony was an electronics maker with a life insurance business on the side. But in late 1987, it acquired CBS Records, home of Michael Jackson and Billy Joel. In 1989, it acquired Columbia Pictures. That same year, it founded Sony Imagesoft, a video game publisher. In the span of just two years, Sony had gone from a hardware-only company to a media juggernaut. This may have contributed to Nintendo’s mounting worries as the years went on and the launch of the Super NES came closer.