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Nintendo will always have to differentiate itself from the competition. In a symmetric, head to head battle over market share Nintendo can only lose because in this case the company (or companies) with the bigger financial resources almost always wins.

What did all those people think who said "NX is going to be successful because it will be a powerful Nintendo console"? Nintendo has never had success by outrunning their competition technology-wise. It makes you wonder where people have been during the N64 and Gamecube era. Back in the 90's it was Sony who copied (and improved!) upon Nintendo's sustaining innovations. Today it's both Sony and Microsoft who will always One-Up them in a direct, head to head battle. The hope that NX would succeed because of power was always an illusion.