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Of course Nintendo can and should compete in the traditional console space. Skipping that area with Wii made sense because both HD systems produced tremendous losses in the early years. The 8th Gen Systems, however, are far more viable and more in line with traditional system costs. If Nintendo had scrapped the valueless Gamepad screen they could have easily made a system in the same ballpark as their peers. If they implemented an annual fee for online and unlimited access to their classic library, they could turn a handsome profit, too.