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omarct said:

When I start thinking about it, Nintendo has these old as hell IPs in Mario, Zelda, and Pokemon. But at the end of the day it has been their handheld consoles(most kids have/had a DS/gameboy in the USA) with their kid friendly games and variety that has kept them afloat. Nintendo 64 did horribly compared to ps1, Gamecube did horribly compared to PS2, The wii was the one exception which crushed PS3(but it had nothing to do with the games/IPs), The WiiU was one of the worst selling consoles of all time and was crushed by the PS4. Now they are back to trying with the switch, a handheld hybrid which is doing very well, and we will see how it compares to Sony's next console.

Overall it seems to me that their parents loved handhelds along with the massive income they get from the toys and merchandising from these IPs are much more important than the income from the home console games themselves. I don't know how Sony could ever compete in that department with Nintendo, they are so far behind that they are not even comparable. Nintendo's kid friendly image has been their biggest blessing and has allowed them to become a gaming behemoth even with all their failures.

I think Nintendo would be shooting themselves in the foot by not releasing another handheld targeting the younger audience. The current Switch is simply too bulky I feel, but who knows.

Nintendo would shoot themselves in the foot if they released another handheld that's not part of Switch platform, but Nintendo will most likly in any case release smaller and cheaper Switch that will be aimed primarily to kids.