I assure you, the price of the physical production of the game usually matters little as long as it will sell for 50000% more than production costs. If it costs $0.56 to make one cart versus $0.08 (totally hypothetical numbers) to print out a disc, it ultimately makes little difference when you're selling the game for $50+. What matters is that the carts were very limited in their capabilities due to memory restrictions. N64 carts were limited to a total of 64MB versus the PS1's 650+MB. Developers lost the ability to work with these limitations while doing what they wanted to do, such as including cut scenes and making large games in general, since PS1 games could be multi-disc as well. Because of this, big third parties moved to the PS1, and with the increased success of the PS1, other third parties that it would have made little difference for either way followed suit.
You are exceptionally far off track in assessing why third parties jumped ship with the N64.
64MB carts for the N64 back then where not .56 cents to make.... rotflmao not even close. Try closer to 20$ a pop, a cost that the publishers had to pay. So yeah making the same game on a CD for pennies was the way to go.
But since you think I am so far off the mark with what I am saying perhaps you will take the word of a developer?
http://www.gamasutra.com/blogs/Luis...he_Origins_and_Fate_of_the_60_Retail_Copy.php
"High cartridge prices made Nintendo 64 games expensive, costing upwards of $80 (in 1996 dollars) versus $40 or $50 for PlayStation. Publishers were able to sell games for less because manufacturing costs for games on CD-ROM were much lower than making cartridge copies. Lower software pricing was one of the reasons why Sony dominated the 5th generation of consoles, leaving both Nintendo and Sega eating dust."
So the difference between producing a cart for the N64 and a CD on the PS1 was a little more than 50 cents..... rotflmao