From NintendoWiki, your source on Nintendo information. By fans, for fans.
The Philips CD-i is a home multimedia device released in 1991 by Philips. Acting in some ways similar to a modern-day DVD player, the CD-i was supposed to represent a revolutionary new era for media players - a single device that could play not just music CDs but also video games.
The CD-i was the result of a failed deal between Nintendo and Sony to create a CD-based add-on for the SNES called the PlayStation Experimental. Sony, however, wanted a large share of the profit from this add-on, as well as the right to brand it with their logo. Without warning, Nintendo canceled the deal, moving to Sony's rival Philips to make the same add-on. Sony's research and development on the PlayStation Experimental led to the release of the PlayStation console in 1996 as a rival to the Nintendo 64.
When Nintendo eventually backed out of the deal with Philips, Philips demanded to use several of Nintendo's characters in games for the CD-i, leading to the notoriously poor Zelda: The Wand of Gamelon, Link: The Faces of Evil, Zelda's Adventure, and Hotel Mario.
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