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Soundwave said:

Partly yes and no. The NES, SNES, even the N64 had success with wider demographics beyond just the "family market". GameCube is where it starts to fall apart, partly because Nintendo allows yet another competitor (Microsoft) to just show up and walk all over them. 

Case in point, before XBox Nintendo was known as THE system to get for First Person Shooters. Think about that for a second, such a thought would be absurd today. 

Nintendo constantly has let Sony/MS walk onto their turf and take away genres they used to be known for .... Japanese RPGs, fighting games, FPS are all genres that had their first huge successes on Nintendo consoles, and Nintendo allowed the audiences for all these games to go elsewhere. 

They should have been far more proactive, how there wasn't an emergency meeting during the N64's development circa 1994/1995 to say "we need to accept CD-ROM because we're losing all our developers" is to this day still mind boggling in its utter and sheer incompetence. 

Yeah I know the times of Turok, Goldeneye and Perfect Dark. But Nintendo decided purposely to change its' appearance and made the Gamecube. They did this because they felt that games tended to become too violent and less original. It's Nintendo's philosophy to produce games for people to have fun with. Nintendo never intended to create games that took their main appeal from shock value, but rather from pure fun. Miyamoto proposed to Rare that in the credits Bond could shake hands with the wounded soldiers he shot during his rampage.

RPGs left when FF7 left. FF7 left due to the wrong storage medium choice. Undeniable that this was Nintendo's mistake, but hindsight is 20/20. I'm pretty sure they didn't say "all our research says that next gen games need more storage space, but nah, whatever!" They had their reasons why they went that route. It didn't pay off but I don't think they could have seen that.

The same goes for why they went with a tablet Gamepad. They had their reasons back then, but they couldn't have known that it wouldn't pay off (and on top of that we all know that the Wii U had several more problems).