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The_Liquid_Laser said:

Third console is the console of financial failure

Nintendo & N64 - Lost the title as top dog.  FAIL!
Sony and PS3 - Lost the title as top dog and lost a crapload of money.  FAIL!
Microsoft and XB1 - DRM and Kinect meant people went back to Sony instead.  FAIL!
Sega and Saturn - Stealth launch in the US doomed the Saturn and ultimately caused them to leave the hardware market.  FAIL!
Atari and 5200 - Crashed the whole damn console market in the US and doomed Atari as a console maker forever.  FAIL!

The only third console that wasn't a big fail was Nintendo's third handheld.  That's because their second handheld, the Virtual Boy, was a giant FAIL.  Their third handheld was either the Gameboy Color or GBA depending on how you number it.  Both were financial successes.  Perhaps the secret is to fail big on the second console and then make an epic comeback?

you see... you can argue that Virtual Boy is Nintendo third generation "Hand Held"... just saying...

1º gen > Game & Watch
2° gen > Gameboy
3ºgen > VirtualBoy