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Sounds like the usual Nintendo rhetoric.

- CD-ROM is expensive and niche and too slow for games. Five years later: Oh we got our butts kicked by Sony, now here's our disc based GameCube.

- Online is too niche and not social. We won't focus on it. Five years later: Yeah well I guess we should make Mario Kart and Smash online.

- Game consoles should only play games and not movies. Six years later: How cool is Netflix on Wii, right guys?