...Mistake again

I agree until a certain extent. But also not; just because they were cheap to produce and sold well doesnt mean that they were good games.

All that logic works until you compare graphics, physics etc. Ok, that may have been golden video game era for the companies, but not precisely for gamers. I prefer games with better graphics, that of course, include fun gameplay and good mechanics. So the the example you mention yes, it had everything except good graphics which, for technical limitations of their time, cant get any close to 8th gen games...

Really depends what your looking for in games. As  gamers we have gotten way more skilled then before for example last time I played resident evil 4  which was my favorite game of all time. I almost fell asleep because how it easy it was and I was playing on hard mode. Compared to the remake which is much more challenging and fun to me now on hardcore mode. Same for Mario World it's a cake walk for anyone playing mario games since nes, it has to have the right balance of challenge, and using strategy and exploration for me to think the game is great.

I would actually say games have generally gotten easier over time in order to appeal to a wider audience and make more money. Rising development costs in particular have driven a lot of games to broaden their demographic reach and lower the bar for entry. Not that this in inherently a bad thing, it just is what it is.

In case of Nintendo games yes but incase of Sony and fromsoftware absolutely not. I'm being honest here in the 7th gen I couldn't find any game that was AAA really challenging. Assassin's Creed for example beautiful location and amazing world for its time but the combat was one of the saddest things in gaming. Uncharted was easy as heck as well and just boring shooting. All Sony games 8th gen offer difficulty setting that have a really good balance imo. Fromsoftware 8th gen Also finally has games that dont like crap with so much jank

We're just gonna have to disagree there; people naturally experience difficulty differently.

I found a lot of 7th gen games gave a very satisfying challenge; Monster Hunter Tri, Sin & Punishment Star Successor, Bayonetta, Dragon's Dogma, (another new IP I forgot to mention) Donkey Kong Country Returns, etc.

I really don't consider some of those AAA games, AAA would be something pushing graphics, story and have a high budget. Besides you haven't even played any of those 8th games that are challenging.

To be fair, I don't think you've played every 7th gen game either. Also AAA titles aren't the only games that exist; one of the great things about the 7th gen was that there was more AA stuff on offer, especially on Wii.

I have played most of the highest rated AAA games which is what i'm talking about and combat has vastly improved, The mechanics now are much deeper with more options and way more challenging. We can thank fromsoftware for that it shows that challenging games can be a huge success.

Games have gotten way easier overtime. People have forgotten what "Nintendo hard" means.

Souls is a soft return to the old days of hard, but not really. Souls is easier than the average NES game.

Growing up I could only beat probably half the games I owned, today not being able to finish a game is just a foreign concept.