Rather than upset the apple cart even further, Kutaragi and his team were sent to work in a different division: Sony Music. Over the next two years, several things happened: Sony worked with Philips (again) to create the first DVDs. Sony almost struck a deal to work with Sega, but instead stuck with Nintendo (again). And Sony never manufactured more than about 200 Play Station consoles. This was all despite the formation of Sony Computer Entertainment (SCE) in Japan in November 1993 and Sony Computer Entertainment of America (SCEA) in May 1994.
The era of the so-called fifth-generation video game consoles had hit. The first of these 32-bit capable, CD-ROM-based devices was 3D0 and Atari Jaguar in 1993. Finally, Sony execs gave the go-ahead for a full build of the PlayStation.
In 1994, perhaps the biggest turning point came when SCE showed off 3D video game possibilities to a couple of potential partners: Electronic Arts and Namco.
The real competition began later in 1994 when the Sega Saturn and original Sony PlayStation debuted in Japan within weeks of each other. The $299 PlayStation, which didn't make it to North America until the following year, cost $100 less. (Nintendo then began its ongoing late-to-the-party streak with the cartridge-only Nintendo 64, released in 1996.)
Not long after the SCE division became the most successful of all Sony's divisions. The PlayStation's worldwide sales by the time it was discontinued in 2005? 102 million units in 9.5 years. (That's in combination with the PSOne from 2000, a PlayStation redesigned for portability which, for that year at least, outsold the original PS.) Compare that with the Nintendo 64's 32.93 million. Even Microsoft's then chairman, Bill Gates, expressed admiration for the console.