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Its of course a combination of several things. Some people mention the lack of DVD playback, I doubt that was the main issue. I think it was overall marketed poorly, and Playstation 2 already had so much momentum, that it was difficult to get into the market.
And honestly, Nintendo's first party games during that generation just weren't good enough. The N64 had 4 system sellers in the first half of its life: Super Mario 64, Mario Kart 64, GoldenEye 007, and Ocarina of Time all giving the system momentum. What did the GameCube have?
Definitive titles in the relatively small Metroid and Smash Bros. franchises can't make up for solid yet underwhelming edtions to their core franchises.