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Nintendo was trying to keep their fans, but it didn't understand that their fans had become so by and large through entering gaming via Nintendo.

So the solution of getting more fans, or having them return was avoiding a sole focus on what the old fans really wanted, which was more sophistication, and instead opening the gateways for new generations of gamers. The Gamecube is just another step on a decline curve that was a long time problem with the way Nintendo was doing business.