AceMos posted...
thats what is meant when the contract said they would own anything released on the device
No it doesn't
It was, by all accounts, Nintendos 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 wouldnt 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 wouldnt get a dime off any of those game salesonly 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, Sonys 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.
https://kotaku.com/the-weird-history-of-the-super-nes-cd-rom-nintendos-mo-1828860861
Nothing about them somehow owning Nintendo published games. They were trying to take Nintendo's cut for third parties. That's what it means by them having ownership over the software. They also didn't need to pay Nintendo anything to release their own games.
It's more accurate to say that they were trying to trick Nintendo into being a third party for their own console.