Which failed business deal in 1991 led Nintendo's rival Sony to develop the PlayStation, ultimately changing the gaming industry forever?

Test your knowledge of video game industry history! The gaming landscape we know today was shaped by strategic corporate decisions, acquisitions, and pivotal moments that transformed small startups into industry titans. This question explores a fascinating piece of gaming corporate history that changed the trajectory of one of today's most recognizable gaming brands.

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Nintendo's rejection of Sony's CD-ROM add-on for the SNES after a prior agreement
Sega outbidding Sony for exclusive rights to Sonic the Hedgehog
Microsoft acquiring Sony's gaming division but canceling the acquisition last minute
Sony's failed attempt to purchase Atari before focusing on their own console