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

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Mr.Y said:

Also: there wasn't really anything competing with the GBA.

True, but competition can really light a fire under a company's arse and get them trying really hard to please consumers, like Sony with the PS3. ;)

Competition also leads companies to take risks and try new things, which results in more innovation and progress for gaming, like how Nintendo's Gamecube and N64 losses pushed them to revolutionize with the Wii.