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Halo helped but Nintendo also accidentally sabotaged the Gamecube's sales by overestimating the demand one winter and customer and retail confidence in the machine took a hit because they had to temporarily halt production on the console because their warehouses where full.

Also they were going through a period like they are going through now where the fanbase wanted to lynch the people in charge because of them murdering everything Zelda stood for by releasing the "kiddy" Wind Waker and its bright colorful graphics and super deformed characters. Who cares if they game was great the graphics ruined everything.