I still remember those mid-90's years vividly, and I have to admit that I didn't feel like my SNES was becoming obsolete at the time. Quite the opposite, really. When Donkey Kong Country and Killer Instinct hit the shelves in 94, it felt like a breath of fresh air.
I believe I already had the Sega (Genesis) Mega-CD 2 at that point, which game developers didn't seem to have a clue what to do with. The Atari Jaguar made it's appearance as well. It was superior to the SNES in terms of hardware, but failed in every other sense. There were so many tragic attempts at stepping up to the 32 bit plate. Thankfully, the PS1 came around in 95 (EU), and we finally knew which horse to bet on.
I've never even heard of the Virtual Boy until I read this article, but it seems like just another obvious fail, and Nintendo should have known it wouldn't take. They've been lost in the woods ever since the days of the SNES. They're always trying innovate gaming with new technologies, and it never works as well as they advertise. As for VR tech... it may have come a long way since then, but it's still not ready. I'll be waiting for the second generation of Oculus Rift and it's ilk before jumping on that train.