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DarkD said:
Getting locked out of the market usually involves being replaced by something better. Your own example demonstrates this, nokia replaced by smartphones. The difference here is that everyone loves smartphones (myself excluded) but the core gaming market never really embraced the Wii as anything other than a once-and-done fad.

Nintendo is a perfect example of how to really lose a market. They screwed up a dozen ways in the SNES and N64 era and lost it to the PS1. PS1 really did offer something people were happy about, so they never went back. Sony became the new gaming standard.

Still waiting for my SNES 32 bit CDROM...