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A few reasons, primarily Nintendo HATES to kill off a system before they have bleed it dry or gotten all potential software released on it. The last SNES game Nintendo published in Japan was in 1999, if they don't have to, Nintendo would not release new hardware for over a decade. See the original Game Boy, it took the combined threats of Neo Geo Pocket, two or three versions of Wonder Swan and a few other would be competitors to force Nintendo to release more modern hardware incrementally until they hit GBA. Heck, if there was no PSP or Vita, we probably wouldn't have seen the DS or 3DS at least until a few years later when cell phone gaming started to become a issue.

Personally, the GC wasn't released late, it arrived the same year as the Xbox if I remember right which was a year after the PS2. While the N64 was struggling in some areas, it was still profitable enough to survive in NA and had decent 3rd party support even in its last year. The Wii was probably a matter of them getting the technology just right and at the right price but the GC was released at the perfect time, Nintendo just chose the wrong software medium like they did with the N64.