The Wii also came bundled with a game to show it off, something the gamecube and n64 didn't do. Wii Sports was a huge reason it sold so well at launch, allowing it to build the momentum for the next 5 years.
The problem Nintendo faced was that both Sony and Microsoft went overboard with the specs of their consoles. Microsoft was initially planning on making the 360 much weaker until Epic convinced them not to. Sony was selling the PS3 for a loss at $600. That's insane, even with the included Bluray player, and it cost Sony a ton of sales for a few years. Sure, had Sony and Microsoft made a more reasonable generational leap the 7th gen probably would have ended in 2011, but the porting issues might not have been so glaring, the cost of development would not have gone up as much as it has, and porting to the Wii wouldn't have been as much of a problem.
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