Would it be better for the GAMERS if Nintendo became software only?

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No. Nintendo's hardware is creative and unique, and differentiates itself where Sony and Microsoft tend to be samey. Gaming would be a much less interesting place today if it wasn't for the Wii remote or the DS's dual screens. I'd be far less interested in the Wii U if it had a PS1-era dual analogue controller.

And competition is good.