The 5th generation battle was a good one indeed. Sony ultimately came out on top, largely due to better CD sound and video of the Playstation, but the N64 contributed just as much into video gaming. No matter which system you preferred, you can't say that one brought gaming innovation further than the other.
I was an N64 junkie myself and didn't get into Playstation until the PS2, but here's my rundown:
PS1:
Fabulous sound, music, and full motion video--big selling points coming from the 16 bit cart era.
RPGs, of which the N64 had very little.
Massive third party support, even if the majority of those games are now bargain bin garbage hardly worth playing.
N64: Nintendo's flagship franchises done new and done perfect. Super Mario 64 was the first 3D game to do everything right, with perfect graphics, sound, camera, and control. Most of the 3D games on the PS1 were rough and clunky.
Multiplayer: 4 controller ports made Goldeneye/Perfect Dark, Smash Brothers, Mario Kart, and other third party racing games easy to coordinate parties around.
Rareware: A "first party" third party developer, Rareware knew the N64 hardware backwards and inside out. Banjo Kazooie, Tooie, Conkers Bad Fur Day, Jet Force Gemini, and DK64 are still very easy on the eyes today and hold up quite well as their own games. Though 3D platformers aren't everyone's favorite thing, their games had incredible personality and were just fun to play.
I think today's argument largely revolves around Wii vs PS3/360, which degenerates into "kiddie gamers" versus "hardcore shoot people in the head over the internet" gamers. It's been clear since the N64 days that Nintendo just plain makes different games, and that's the way they are. So I never hold it against anyone for disliking Nintendo, but their industry innovations (DS, anyone?) cannot be denied, and all the parties would do well to learn from each others successes and mistakes.
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