Last week, a video was released that demonstrated a major performance increase in certain areas of Mario 64, if you recompile the code with optimizations turned on.
Modern Vintage Gamer just did a full analysis of the situation and came to the conclusion that Nintendo didn’t make a “mistake”, they just did the best they could, with what they had access to at the time. Definitely check the video out if you’re interested though, as MVG did a great job walking us through everything and demonstrating the differences.
Also, my point in the original post still stands: The reverse engineering of Mario 64 was an incredible achievement and something the team should be incredibly proud of!
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