Definitely not. The N64 outperformed the PSX, but it was far harder to program for and cartridges were far more expensive than discs. That's where Nintendo's lack of 3rd party support began. The Gamecube and Xbox were about on par with each other, and both outperformed the PS2. But the PS2 had a huge lead time and strong 3rd party momentum from the PSX. The Wii was the shift where Nintendo began to fall behind on horsepower, instead focusing on broad market appeal, lower price points, and less intimidating input methods. The Wii U and Switch are continuing that trend, trying to chase the Wii dragon, but so far not succeeding.
I think there's more to it than that. Matt Leone wrote an amazing Oral History of Final Fantasy 7, published over at Polygon: http://www.polygon.com/a/final-fantasy-7
The switch from N64 to PS is talked about a lot - Square definitely started development for FF7 on the N64 prototype systems before switching over. Hiroshi Kawai, a character programmer for Square, has what I think are the most telling comments:
"I kind of had a suspicion that things weren’t going too well for the 64 at that point, because … one of my responsibilities … was to write performance applications that compared how well the 64 fared against the prototype [PlayStation]. And we’d be running parallel comparisons between the [PlayStation] where you’d have a bunch of 2D sprites bouncing off the screen and see how many polygons you could get within a 60th of a second. And even without any kind of texturing or any kind of lighting, it was less than 50% of what you would be able to get out of the [PlayStation]. Of course, the drawback of the [PlayStation] is it didn’t really have a z-buffer, so you’d have these overlapping polygons that you’d have to work around so that you wouldn’t get the shimmering [look]. But on the other hand, there was no way you’d be able to get anything close to what FF7 was doing [on PlayStation] on the 64 at that time."
Kawai has more on the topic, which is fascinating. And the entire piece is just amazing, and I imagine most people on this thread would enjoy reading it.
At the time, this is true. One of the N64's primary limitations was its suboptimal microcode. It wasn't until too late in the console's lifecycle that studios like Factor 5 and Rare really showed its potential with their own custom microcode.
