I completely agree with all Nintendo's rhetoric over the last couple of years - you know, the stuff about the "market stagnating", "players losing interest", "games not being innovative" (etc). If the DS would have been replaced by a GB II (say something like the PSP), the Japanese market would be dead. Take out all those "touch generation" sales, half (or less) sales on PSP titles (to share between both machines). Who knows what would have happened - maybe a bunch of studios would have shut down by now. Probably the only beneficiary would be Sony - the PSP may have taken the market lead?
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