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RolStoppable said:

Sure, Nintendo had no idea what they were doing. But at least you are now conceding that Nintendo made a big mistake.

Seriously? I said:

  • You're focusing on the wrong point. It was 3rd party that turned the tides in gen 4, not 1st party.
  • Nintendo's 1st party sold more than Sony's gen 4, sequel or not.   The sales are close, but the tie ratio for individual titles is much much higher for the N64.
N64
PosGamePlatformYearGenrePublisherNorth AmericaEuropeJapanRest of WorldGlobal
1 Super Mario 64 N64 1996 Platform Nintendo 6.91 2.85 1.91 0.23 11.89
2 Mario Kart 64 N64 1996 Racing Nintendo 5.55 1.94 2.23 0.15 9.87
3 GoldenEye 007 N64 1997 Shooter Nintendo 5.80 2.01 0.13 0.15 8.09
4 The Legend of Zelda: Ocarina of Time N64 1998 Adventure Nintendo 4.10 1.89 1.45 0.16 7.60
5 Super Smash Bros. N64 1999 Fighting Nintendo 2.95 0.60 1.97 0.04 5.55
6 Pokémon Stadium N64 1999 Strategy Nintendo 3.18 1.24 0.94 0.09 5.45
7 Donkey Kong 64 N64 1999 Platform Nintendo 3.33 0.79 1.09 0.06 5.27
8 Diddy Kong Racing N64 1997 Racing Nintendo 2.91 0.99 0.89 0.10 4.88
9 Star Fox 64 N64 1997 Shooter Nintendo 2.78 0.58 0.64 0.04 4.03
10 Banjo-Kazooie N64 1998 Platform Nintendo 1.87 1.13 0.55 0.10 3.65
11 Pokémon Snap N64 1999 Simulation Nintendo 2.23 0.68 0.66 0.06 3.63
12 The Legend of Zelda: Majora's Mask N64 2000 Adventure Nintendo 1.90 0.67 0.73 0.06 3.36
Versus
PS1
PosGamePlatformYearGenrePublisherNorth AmericaEuropeJapanRest of WorldGlobal
1 Gran Turismo PS 1997 Racing Sony Computer Entertainment 4.22 3.87 2.54 0.52 11.15
3 Gran Turismo 2 PS 1999 Racing Sony Computer Entertainment 3.88 3.29 1.69 0.50 9.36
5 Crash Bandicoot 2: Cortex Strikes Back PS 1997 Platform Sony Computer Entertainment 3.78 2.17 1.31 0.31 7.58
7 Crash Bandicoot 3: Warped PS 1998 Platform Sony Computer Entertainment 3.68 1.75 1.42 0.28 7.13
8 Crash Bandicoot PS 1996 Platform Sony Computer Entertainment 3.23 2.35 0.94 0.30 6.82
18 Spyro the Dragon PS 1998 Platform Sony Computer Entertainment 3.36 1.36 0.07 0.21 5.00
19 Crash Team Racing PS 1999 Racing Sony Computer Entertainment 2.57 1.57 0.44 0.21 4.79
30 Spyro: Year of the Dragon PS 2000 Platform Sony Computer Entertainment 1.93 1.58 0.00 0.19 3.71
36 Grand Theft Auto 2 PS 1998 Adventure Take-Two Interactive 1.13 2.07 0.00 0.22 3.42
37 Crash Bash PS 2000 Misc Sony Computer Entertainment 1.56 1.47 0.19 0.17 3.39

In other words, had the blue ocean never existed, Nintendo was in a very bad position. Yes they were making lots of money, but their platforms were not attaracting 3rd party support.

If Nintendo were any smart, they would go after both the blue and the red. And they're precisely doing just that.

You're saying Nintendo was not victim to circumstance and failed on its own merits, I'm here to show you that PS proves you very very wrong. Yes the blue ocean would have expanded Nintendo's market, OF COURSE. But the red ocean Nintendo lost due to circumstance.

See, the PS1 followed the NES tradition pretty much spot on. New IPs, decent 1party sales, decent 3party sales, games that appeal to all ages and genders (without necessarily aggressively marketing said segments).

What Nintendo did is that it failed to attract the 3rd parties, and didn't have the leverage to even attract the extended segments. That's why the Wii needed such an aggressive marketing strategy, one that was not needed for the NES.