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A number of reasons. The biggest one is, of course, Pokémon.

Aside from that, Nintendo has more experience than their only competitor. Their brand awareness for handhelds is also bigger, partially because Nintendo made the only mainstream handhelds for a while.

Couple that with cheaper development on games, actual support from their manufacturer, and finally the fact that Nintendo has no other choice but to win handhelds right now. If they weren't, they'd be in big trouble.



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