Apart from the video game, the term has been in use amongst musicians for years – where did it come from, documented listings?
Learn English – Where did the term “garage band” originate from
etymology
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From Etymonline:
doggone 1851, Amer.Eng., a "fantastic perversion of god-damned" [Weekley]. But Mencken favors the theory that it is "a blend form of dog on it; in fact it is still often used with it following. It is thus a brother to the old English phrase, 'a pox upon it,' but is considerably more decorous."
Others have it derived from the Scottish dagone, or "gone to the dogs," but there's a bit of debate about that.
From my own search, I found several pre-1851 uses. It looks like it may have first appeared in print in a British publication, albeit of an American vernacular dialog, in Adventures in Mexico and the Rocky Mountains by British explorer George Ruxton, 1847 (date check):
It subsequently appeard three times in 1848 in Blackwood's Edinburgh Magazine, in articles written by Ruxton while living in America.
If you've ever had an electric shock, you're well aware of the jolting effects of a live wire.
It didn't take too long for the term live wire to enter the vernacular:
Probably everybody likes to be known as a "live wire." The First National Bank, of Ashland, Ala. thinks so for they recently used an advertisement which read as follows: "Every live wire has a bank account. Are you a live wire?" (The Bankers magazine, 1921).
If, however, you accuse yourself of being a live wire and capable of acting without the sound of a gong or the beck of a boss (from a 1922 ad)
More recently, from the realm of music:
Don't touch me, I'm a real live wire (Talking Heads, Psycho Killer)
I'm guessing that wired evolved from the term live wire, which connotes being energetic, full of verve, and ready to go.
Best Answer
As Robusto comments, it's probably just an obvious turn of phrase that could easily have been "re-coined" repeatedly.
As Google NGrams shows, the term had no real currency until the 1980's, but that certainly doesn't mean such bands didn't exist (see this site).
Personally I think that it's quite possible many parents of wannabe rockers (esp. perhaps West Coast Americans) may have used it to describe what their kids get up to on the weekend, even back in the 50's. But it didn't really gain traction until the post-punk era, when the type of music associated with it started to become commercially significant.