Gnizmo on 04 November 2007
I have to disagree on the rare selling decision. They had stopped making any really good games before Nintendo sold them, and the Gamecube didn't seem to suffer (more than normal) in the post Rare era.
I am going to have to echo the sentiment that a $600 pricetag on a console was the biggest mistake. I suppose that could possibly be proven wrong by the end of the generation, but I figure it will be the second biggest at best. The other one that might be the biggest (depending on how this generation plays out) is the sticking with catridges on the N64. As much as I love them for sticking with it (I hate load times and FMV cut scenes) it certainly cost them the position as the market leader.
