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Overlapping support is a simple matter of cost/profit per unit. Both the NES and SNES were successful enough to warrant low cost redesigns that stayed on the market well into the next generation.

It may not get the best support once Project Cafe is available, but Nintendo will keep it as a low cost legacy system, possibly for as low as $99.

And yes, it is dying a natural death based upon a 5 year development cycle. Only die hard Nintendo fans would be in denial over this.