Predictions of my own:
Nintendo wins with N64. Sega Saturn does well enough to remain viable, leading to a better dreamcast. Saturn is more of a 2D machine, and import carts become a huge thing. Dreamcast does flop some financially due to piracy, but online play becomes bigger earlier, as Sega pushes it hard. (they had it on the Saturn) Overall sales aren't massively better, as some folks "grow out" of gaming who wouldn't have with the PS1.
There are huge fanboy debates over which console has better RPGs- Nintendo would have FF7, but Sega would have a ton of well-regarded games. Due to this, Nintendo makes a deal or acquires Falcom in the late 90s, and Ys games become a good hit on the Gamecube.
Most of the PS1-era innovations get pushed back a few years to the Dreamcast/Gamecube-era, and are done with slightly better technology. Those folks who "grew out" of gaming either end up PC gamers or go back during this time.
Tekken bombs and Harada is currently working on Idolmaster games. The Neo-Geo 64 has more success, and SNK limps on into the present day without going bankrupt.
The lack of opportunity in Japanese gaming compared to current timeline has an impact on anime, and the anime boom in the US of the late 90s/early 2000's lasts another couple of years. This might allow some companies to survive.
VF3 becomes a major arcade hit, and the Dreamcast's killer app for next gen, going up against KI2. Dreamcast wins the following gen vs the Gamecube, though both consoles have profitability concerns due to piracy. The Wii U happens around the original timeline due to this. The increased success of the CPS3 and SNK's better fortunes butterfly away Arcsys, so no Guilty Gear, and SNK remains relevant.
The big fighting games of Evo 2000 are VF3, SF3:3rd strike, KI3, and Darkstalkers 4 (on CPS3 hardware) , and a SamSho game of some sort.
Arcade decline in the US gets staved off a couple more years, but still happens.
Piracy and Emulation become more of a thing then what happened in our timeline, due to the games being more emulatable, and a desire for translation patches.
PC gaming continues on as is, with few changes until 2010 or so, where you see fewer PC ports of old console/Japanese games due to Sega not dabbling in PC.