I remember seeing that in Nintendo Power as well. Being the Chrono Trigger and Final Fantasy 6 and of course, huge Nintendo fan as well, it was a bit shocking they were switching. I remember seeing pics from the old tech demo featuring the FF6 characters and at first being excited for 7 on the N64.
Although, my expectations for the N64, before any gameplay pics were even released, was completely unrealistic. Nintendo Power was definitely over hyping it of course, but I seemed to get in my head that it was going to be producing Toy Story type graphics....or basically what we have in todays games.
So when the first screen shots of Mario 64 came out, I was a bit disappointed and left let down.
But I had also over hyped it to all my friends, some who were will Sega fans, (which I was as well) and Playstation fans. So I had to keep this image up of course, being 14 to 15.
I remember seeing screen shots from Tekken in another magazine. They were showing the prerendered stuff, which looked far better than Mario 64....but Playstation was ONLY 32 bits, how could this possibly look better???? I wrote it off as being fake. Until a neighbor got a Playstation along with Tekken.....and wanted to show me those graphics. Of course I didn't know what prerendered even meant, and therefore not playable graphics....but it didn't matter, I had felt Nintendo had betrayed us all.
Christmas 1996, I still got the N64, my younger brother the Playstation with the new Twisted Metal 2.
In the end, I only ever ended up owning four N64 games, and ended up switching to PlayStation. My friend had Goldeneye, so I didn't buy that....many years later I did get a copy. So I now own 5, which are still on the shelf.