16-bit CD add-on systems weren't exactly known for their high-quality games. For every Ys, Snatcher, Dungeon Explorer II, or Lunar there was Marky Mark Make My Video, Prize Fighter, and Masked Rider: Kamen Rider Zo. Actually, there were at least two horrible full-motion video (FMV) games for every decent CD game produced.

Is there any reason to suspect that the Nintendo CD wouldn't be deluged with crappy FMV game after crappy FMV game? Sure, there'd probably be a killer Zelda title but there'd also be "Tom Zito Presents Mario's FMV Adventures in FMV Land Starring Corey Haim" and "Samus Aran Takes You on a Tour of the the Louvre".

Sony wouldn't be producing the finest quality CD games either. Look no further than the Sega CD games developed under the Sony Imagesoft label. Their handiwork included games like Hook, Last Action Hero, Cliffhanger and an assortment of drab "ESPN" branded sports games.

So by 1992 we have two pricey CD add-ons cranking out games nobody wants with a third spiraling into the clearance bin. Instead of changing course, suppose Sega and Nintendo try to outdo each other in the "multimedia" department. Game play goes to hell while publishers load hours of grainy video into each disc. Consumers turn sour.