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S.T.A.G.E. said:
Soundwave said:

They could probably take Microsoft if they did everything right and got some better management in place, but the problem is they'd be forced to engage Sony head on whether they want to or not in that case and MS would also force them to spend money beyond what they want. 

I think after the early 2000s and Yamauchi realized that Microsoft wasn't going to fail massively in the game business, and seeing how MS just casually threw several billion in his face to buy Nintendo entirely ... Yamauchi changed and so did Nintendo. 

From that point on Yamauchi instructed Iwata and all his staff that they had to be different and could not compete head on as it would be suicide financially as MS could outspend Nintendo no matter what. Before that time though Yamauchi had no problem with direct competetion and was often a vicious competitor. 

Microsoft is what changed Nintendo I think, they got scared at where the industry was going and didn't want any part of that, it's like being in a poker game and seeing the money on the table getting too rich for your blood. Time to bail. 

Nintendo could definitely take on Microsoft with a traditional console. The only reason why Microsoft split Sony's former marketshare was by keeping their platform as close to what they expected Sony to make as possible and keep the console third party friendly. If Nintendo did the same and bolstered their first, second and third party exclusives Microsoft would be in for a world of hurt because the hits would just keep on coming. Its the same way Sony came back from a 10 million console deficit to Microsoft. Their exclsuives kept people interested while Microsoft was struggling to find an answer.

They maybe could. They could also get their ass kicked. That's also a distinct possibility. Nintendo is too chicken shit to try either way, so here we are. 

The truth is on that, Nintendo needed to beat MS to a bloody pulp so bad with the GameCube Vs. XBox that MS never dared to come back. But instead MS got through that generation thinking "hey we're new at this, but look we're even beating Nintendo and they've been doing this for 20 years!". That gave them confidence and now that whole market segment is way too overcrowded. 

The stuff about "well maybe they should try now" ... nah, you guys are about 15 years late. This shit needed to be done 15 years ago. Today, forget it. It's like letting someone walk into your country and take over huge regions of it and thinking 15 years later they'll just hand it right back. Nuh uh. Nintendo will be taking that back right after Atari takes market share back from Nintendo for stealing their market.