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Veknoid_Outcast said:

I don't know about that. When Nintendo releases affordable, approachable gaming machines, it succeeds. When it tries to compete with Sony and Microsoft and, by doing so, conforms to the expectations of third parties, it falters.

I think the only thing making Nintendo "niche" is when it refuses to play to its strengths.

There is no overriding reason why Nintendo cannot compete with Sony and Microsoft while still doing their own thing.  The truth is, they just fail at it.  They should be able to, objectively speaking--they have the money to pull it off--but they always fall short.

There isn't anything limiting about what Sony does.  They just followed what Sega was doing and allowed third-party games to compete with their own while embracing new features.  Nintendo could have done the exact same thing with no damage to their own games.

Nintendo just got beat.  Simple as that.  They got beat with technology, they got beat with features, and they got beat with business acumen.  They could have embraced all of that while producing the exact same games.  There was no trade-off necessary.