Sony originally partnered with Nintendo in 1988, to develop a CD-Rom Famicom system. Later Nintendo denied Sony’s involvement, in March of 1991, in anything they were developing and soon cancelled their partnership with Sony completely, after Sony announced the development of a Super Famicom with a CD-Rom Drive, Green Book technology / CD-i called “Play Station” or SNES-CD, causing the president of Sony to tell Ken Kutaragi (Also known as the Father of the PlayStation) to develop their own console to Rival Nintendo.
During this time there were still negotiations between Nintendo and Sony. Nintendo offering Sony a “non-gaming role” regarding Nintendo’s new partnership with Phillips. The proposal was denied quickly by Kutaragi, who was facing increasing criticism for his work to satisfy the video game industry inside Sony. The negotiations stopped in May 1992.
At the ending negotiation meeting, Kutaragi revealed the CD-Rom based system he was developing, which involved video games that included 3D graphics. The Sony president, Norio Ohga, decided to retain the project after being reminded by Kutaragi of the humiliation that was caused by Nintendo. Due to a strong opposition internally by the older generation of Sony executives and at the meeting, Kutaragi and his team were moved out of the Sony Headquarters to Sony Music, which was a completely separately financed section of Sony to retain the projects development and to keep a good relationship with Phillips, which would lead to the development of the DVD.
On November 16th 1993 Kutaragi worked with Shingeo Maruyama, the CEO of Sony Music, and with Akira Sato to form the Sony Computer Entertainment Incorporated. The initial partnership with Sony Music helped attract creative talent to the company and also assisted in manufacturing, marketing and producing discs, Sony Music had been doing this with music discs the whole time.
On December 3rd 1994, the first PlayStation, SCEI’s first official project, was released in Japan and the very next year it would be released worldwide. In 2000 the PlayStation had a re-branding and redesign, which was now known as the PlayStation 1.
During the redesign of their already popular PlayStation, Sony worked on their first handheld console, the PocketStation, which was only released for Japan. The PocketStation had a monochrome LCD screen, a speaker, real-time clock and infrared communication.