I wonder in part if it was a clever way of working with the system's limitations at the time. A lot of PS1 games also had that dark look or used fog to hide the limited render distance, even something brighter like Driver did it. But then maybe it was liked so much, those limitations created their own art style that bled into popular culture where the need to do it wasn't necessary. As others said, movies and TV often had that look too, while popular music very much came from the outsiders of society, many were edgy and pushing what was socially acceptable in the 90s.
I grew up playing the GTA games on PS2 and the worlds felt massive at the time (GTA 3 is also very dark and Max Payne, while San Andreas used a lot of fog!) but then it became apparent from the remasters, how much the developers leaned into the hardware limitations to create that amazing atmosphere and a sense of depth often lacking in games nowadays. Limitations breed creativity.
As for Nintendo at the time, the one thing I really remember is the music and sound in their games really added to an amazing atmosphere that probably couldn't be replicated. Super Mario 64 was so echoey lol
Xbox Series, PS5 and Switch (+ Many Retro Consoles)
'When the people are being beaten with a stick, they are not much happier if it is called the people's stick'- Mikhail Bakunin
Prediction: Switch 2 will outsell the PS5 by 2030
