Nintendo lost the market with the N64 not because they went after the high powered system, but because they drove away developers.
They used an expensive medium and restricted how many games could go on the system. Nitnendo's drive was to have the dream team of developers that didn't put out a lot of games, but instead put out a limited number of great games. Sony said, "hey, you can develop whatever you want on our system and it'll only cost you like $10/game compared to Nintendo's $30/game". Once all the developers left it didn't matter what Nintendo did, red or blue ocean colored. Without software you can't sell hardware.








