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Nintentacle said:

It made them money, so it was a success.

did it? Fact is that Nintendo did make profits during the GC era, but during that time they had an 80million+ selling handheld and the (somewhat slow) start of a 150 million+ selling handheld. Afaik Nintendo never broke down which part of their company made those profits, so I think it's reasonable to assume that their home console branch just didn't lose enough money to eat up their handheld profits.