The inception of what would become the released PlayStation date back to 1986 with a joint venture between Nintendo and Sony. Nintendo had already produced floppy disk technology to complement cartridges, in the form of the Family Computer Disk System, and wanted to continue this complementary storage strategy for the Super Famicom. Nintendo approached Sony to develop a CD-ROM add-on, tentatively titled the "Play Station" or "SNES-CD". A contract was signed, and work began. Nintendo's choice of Sony was due to a prior dealing: Ken Kutaragi, the person who would later be dubbed "The Father of the PlayStation", was the individual who had sold Nintendo on using the Sony SPC-700 processor for use as the eight-channel ADPCM sound set in the Super Famicom/SNES console through an impressive demonstration of the processor's capabilities.
Kutaragi was nearly fired by Sony because he was originally working with Nintendo on the side without Sony's knowledge (while still employed by Sony). It was then-CEO, Norio Ohga, who recognized the potential in Kutaragi's chip, and in working with Nintendo on the project. Ohga kept Kutaragi on at Sony, and it was not until Nintendo cancelled the project that Sony decided to develop its own console.
Sony also planned to develop a Super NES-compatible, Sony-branded console, but one which would be more of a home entertainment system playing both Super NES cartridges and a new CD format which Sony would design. This was also to be the format used in SNES-CDs, giving a large degree of control to Sony despite Nintendo's leading position in the video gaming market.