N64 lost because of the cartridge format, not because of price point.
If they had added $50 to the N64 price and included a CD-ROM drive (making it dual cart/CD like the Saturn), the system would've beaten the PSX even with a higher price point IMO.
Games like Metal Gear Solid and Final Fantasy VII and Resident Evil 2 would've been multiplatform. Combine that with Super Mario 64, GoldenEye, Zelda:OoT, etc. and Sony would've been in trouble.
The Wii can't be ignored because a lot of the people who buy the Wii are core gamers. It's the dirty little secret MS/Sony fanboys don't want to talk about.
The truth is a lot of people who were 16-24 during the PSX-era are now into their late 20s/30s, and just like when demographics changed with the SNES-to-Playstation transition, they have shifted again.
Your priorities change in your late 20s and 30s. You don't have time to spend 40+ hours playing 1-player games anymore. You are more social. One of my friends who plays almost all Wii nowadays, 10 years ago was all about Quake and Final Fantasy. Not anymore.
The success of things like Guitar Hero and Wii is very much driven by adults. They just want to have fun and have a something they can play with their family/friends/fiance/spouse.
