LogFAQs > #964955574

NeonOctopus posted...

They probably do that cuz last time they released a normal console to directly compete with PS2 and Xbox, they did the worst out of the 3. So they feel like if they make different console, they can make their own niche in the market and attract the Xbox vs. PS consumers as a side product.

Well there were a number of factors that Nintendo did that ultimately made them lose the "console war" like smaller discs, not being dvd compatible, no online functionality, and a "weird" looking controller (even though I really like it myself). Then there was also the problem that making a Gamecube was more expensive than Sony and Microsoft making a PS2 or Xbox simply because Sony and Microsoft were just much bigger than Nintendo as a whole. It's the reason Sega couldn't compete against Sony, Sony had bigger purchasing power which allowed them to purchase parts at a severe discounted rate. The more money you have the bigger spending you can do which allows for more bargaining power.

So yeah Nintendo doing their own thing was probably the smartest move they have done in a long time.