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zorg1000 said:

SNES is not the kind of console Nintendo wants or needs on the market, the strength of 3rd parties on SNES had a direct negative effect on Nintendo's own software.

 

Replace "3rd parties" with "Genesis" and you're spot on. It wasn't third parties. The NES had third party software locked DOWN and it had 95% of the market. When Sega let their US branch do what they wanted towards the end of 1990, that 95% had fallen below 50% by 1994. They were able to make Nintendo look like it was a toy for kids and nerds and it hurt them dearly. That's why their software declined.