Shuhei Yoshida says Square tried convincing Nintendo to move away from cartridges:

"Sakaguchi was disappointed when he learned the N64 still used cartridges...

Square tried convincing Nintendo to change that plan, but they wouldn’t. They didn’t believe in CD-ROM."

https://venturebeat.com/business/shuhei-yoshida-looks-back-at-31-years-at-sony-playstation-exit-interview/
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