Based on http://gamrconnect.vgchartz.com/thread.php?id=240751

So after Nintendo goes with N64 with CD, doesn't loose FF and Japanese publishers to Sony, and has a good fight with PS1 (either winning or loosing, but nowhere near like in RL timeline), proving that solid hardware and good relationships are viable option for good and profitable gen, what happens next? Gamecube becomes GC-DVD and has great 3rd party support going strong vs PS2? Does MS even enters the market?

GC had DVD, Nintendo still didn't care about 3rd parties, so not much changes again.

RL GC had miniDVD and premise is that Nintendo learnt the value of good 3rd party relationships with N64-CD.

Dreamcast won the generation.

Why not them also make that Sony broke if you want to change history this much?

We are several generations later than these alternative timeline and Nintendo still don't have as much regard for 3rd parties as you want in your alternative timeline.

Actually in the original one we could go that since N64 would have CD, Sony developed it so Nintendo would win because Sega wasn't competent enough to compete. And with Sony doing the CD and having much of the money then they would still doing that way.

Microsoft likely would enter the race, inspired by Sony's PlayStation. Even if the PlayStation loses to the N64, it would still put up a heck of a fight. I wouldn't even be surprised if Sega Saturn is the end of Sega, and they have no Dreamcast.
So setting the 6th Gen up, we have a DVD-compatible GameCube with backwards compatibility. PS2 would likely still give a huge fight, even if they lose. PS2 would have year or so lead on the GameCube like in real life. That would give the PS2 an early advantage. I also see the Grand Theft Auto series doing insanely well and bolstering the PS2. Even if GTA still comes to the Xbox and now the GameCube, it will likely stay a timed-exclusive on PS2.
I don't see the Xbox selling much more than it did in real life. Microsoft still releases the 360 in the 7th Gen, but I don't see them making it to Xbox One.

Well this should be sounds like the universe #10.

Nintendo64 CD based would have family friendly Grand Theft Auto without cocaine.

They’d probably have skipped the Gamecube since a stop gap console wouldn’t have been required.

I don't think anything would have changed with Nintendo adopting motion controls as they were looking for a new type of revolutionary controller before Dreamcast launched (looking for new revolutionary controller features is fairly regular for Nintendo, Gamecube remains the only Nintendo console without any notable advancement), but it didn’t materialize until the Wii. Nintendo would have still been introduced to the tech in the late N64 era, but on this timeline, the N64 will have the power and success to go a few years longer; so Nintendo could wait until 2004.

An earlier released Wii, without Nintendo getting the “Power doesn’t matter as much as you think” wake up call, would have been: A) more powerful, B) more expensive, and C) Probably uglier. So around the time of the original Wii launch we might see the Wii Lite model which would have the sleek approach the Wii did use. In another universe with a successful N64 and without a PSP, DS Lite would have just been “DS” launching in 2006 instead of being rushed to the market so quickly.

Nintendo cared, courted, and publicized how many third parties were onboard with the GameCube. They claimed they learned their lesson. Even got the famous "Capcom 5" exclusive games that eventually became the "Capcom 4" because of poor GameCube sales and then 3/4 of those wound up going to the PS2 because it was such a Juggernaut.

With the Xbox being more powerful and the PS2 being more popular and both having better storage (just like with the N64, the GameCube version of games would be missing cutscenes, levels, music, etc), there was just no reason to support the GameCube over the competition.

That's interesting angle. My line of thinking was that if N64CD was reality in that timeline, one of major things that leads to it would be that Nintendo realized they need to have better relationship with 3rd party publishers, thus giving them much better library and being much more competitive against PS. So, in the end, whether it's N64 victory or slight defeat against PS, standard "red ocean" approach would be more than enough for them to launch successor that is similar to N64CD - fairly powerful hardware that has same media storage as competition and brand name and good 3rd party support to carry it throughout generation.

So maybe in that timeline, Wiimotes come to well established GC as accessory to broaden the audience...