I'm not sure if Nintendo was ever proposed a console by Hudson, but if that's the case, then the Playstation would make a whole lot more sense now. The TG16 failed without Nintendo's involvement, why shouldn't the Playstation? And just like the PCE, it was backed by an electronics company larger than Nintendo.
Regardless, the PCE would fit Nintendo's logic of using frugal but capable tech proposed by Yokoi (ironically enough, the N64 and GameCube, and to some extent the SNES, used new, proprietary hardware that developers weren't quite familiar with), and was later taken to the extreme by Iwata. The PCE was essentially a supercharged NES, and in ways could actually outperform both the Genesis and SNES, at least on the CPU level, at the cost of having relatively old-fashioned graphical capabilities. It was a 6502 based machine that could display one layer of backgrounds and one layer of sprites, not unlike the NES, which means developer adoption for the system would be it's main advantage, at least in the short term due to the poor video hardware.
MyaxGrafx: Beyond 8x8: 8x1 pixel attributes...and more?
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