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HappySqurriel said:

In my opinion, the problems that resulted in poor sales for the Gamecube were:

  1. Nintendo released their console 18 months (in Japan, 12 months elsewhere) later than the PS2
  2. Nintendo wasn't particularly agressive with their first party line-up
  3. Nintendo didn't attract much (exclusive) third party support initially, and was unable to prevent the loss of third party support later in the generation
  4. The Gamecube wasn't particularly distinct in the market, and there was little reason to own a Gamecube in addition to (or instead of) a PS2 or XBox
  5. Nintendo didn't define the Gamecube to consumers, and Microsoft and Sony were able to define the system as being "Underpowered" and "Kiddie" in consumers' minds.

This....

I would add but HappySqurriel said all what I wanted to say :)