S.T.A.G.E. said:
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They went for market share, just failed in grabing it. PS2 was massively more profitable. Nintendo today has way more financial issues now than they had during the NES/SNES days where they had the biggest share. They guy with the big share can just crush you until your share vanishes.
Nintendo will be lucky to reach GC levels with the Wii U. If you exclude the Wii, they are on a downwards spiral, a lot of it because Sony stole their market constantly since PS1 days.