Cultural Impact: I mean the honest answer is obviously Grand Theft Auto: San Andreas, both for its depth of realism in an array of respects and, more than any other game, making "life of vice" adventures a defining feature of the remainder of the decade and to some extent beyond. And need we even mention the "Hot Coffee" drama? Few video game controversies did I ever hear more about.
Favorite Games: I hate to be boring, but I must agree with the consensus here and name Half-Life 2 as my top favorite of the year as well. I think we here all know what makes Half-Life 2 a masterpiece (which is everything), so I'll move on the runners-up:
I actually have several in mind. Foremost among them though is the very unique and open-ended indie RPG Yume Nikki, which I first discovered more than a decade later after learning that it was an influence on the development of Undertale (which is my favorite RPG of all time). It's got a very distinctive and oppressive atmosphere that drew me in instantly. And I related A LOT to what its story was about.
But in addition to these, also Paper Mario: The Thousand-Year Door, Baten Kaitos: Eternal Wings and the Lost Ocean (which was released in 2004 here in the U.S.), and Tales of Symphonia (which was an '04 release Stateside). In addition Metroid Prime 2 and the very clever and addictive Katamari Damacy. 2004 substantially was a year that revived my waning interest in JRPGs.
I'll give The Thousand-Year Door a little extra attention here since I know I've been a bit stingy with the Mario love up to this point compared to many. In spite of its fairly obvious pacing problems, Paper Mario: The Thousand-Year Door is my favorite Mario game ever of any genre. As was very much in style at the time, the game features a somewhat edgier choice of backdrop in the aptly-named Rogueport, setting something of a darker tone that actually felt like a bit of a welcome course correction in the direction of a healthier balance for this franchise to me. The lovable characters are what make this game, in my opinion, the best in the franchise. I felt a particular connection to Vivian emancipating herself from an abusive relationship and Admiral Bobbery's struggles with a sense of guilt over the loss of the love of his life especially. While theirs and others were surface-level sub-narratives deployed with a light touch appropriate to this franchise, there was a fundamental sweetness and sensitivity to their inclusion that elevated this game above other Mario titles for me. And I don't think I need to explain Goombella being the best, cutests, and most endearing traveling companion Mario has shared his adventures with to date, nor do I need to expand on the hilarity with which Luigi and Bowser insert themselves into this game. And yes, I'm eagerly anticipating the remake. It looks amazing!
You are now appeased, Mario bros.
(I think this might also be the first time that me and Archbrix have been more or less fully on the same page. 
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