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"And why do all of these failures have better graphics than the Nintendo DS?"

Better question would have been why does every competitor have better graphics/sound than Nintendo handhelds?

Nintendo's handheld competitor's have almost always been better looking and sounding. However, no one has taken Nintendo's complete control over the handheld market. PSP is the only one to even come close and it is outsold worldwide 2:1.

This is probably why the Wii is not at par with 360/ps3. Nintendo realized it doesn't really matter for the mass market, only a niche group.