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Squilliam said:

You've really created a false dillemma here. It is pretty obvious that the response will always be to release the next generation console whilst continuing to support the present generation devices as they simply haven't gone out of date, even less so than the Wii was when the Wii was released. The real important question is 'where does this generation leave Nintendo with respect to their competitors?' With this you can't easily point to Nintendo being nearly as dominant going into the next generation as they ought to have been judging by the success of the current generation. Being 'outsold' as market leader doesn't do them any favours even if they have a large install base. Whilst Nintendo has been reaping those profits in the short term both Microsoft and Sony have been building up their online networks whilst at the same time taking away Nintendo's main competitive advantage in their exclusivity with new control methods. Nintendo may not be able to bridge the gap in that respect so please don't fiddle on your fiddle as Rome lays burning.

Haha ok, and yet again Nintendo will be heading into a generation "doomed." What else is new?

Honestly, when will people learn?