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not only that, but the PS3 has to compete against 2 competitors where-as the N64 only had to contend to 1.

Nintendo was on top of the console wars with NES and then SNES, but moving on with N64 knocked them down to a distant second. But if you look at it, the PS3 isn't doing as bad as N64 and Sony isn't forgotten as quickly as Nintendo was back then.