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nintendo still had the same mentality as before with n64 and tried to outgun ps2 but with a console released later than the competition, the problem is didn't have the support of the third party developers esp with limited capicity disc, from this moment onwards, nintendo realised that they were on a losing battle (echoes with wii u) and by 2003 onwards already starting a new console the wii but with different target market, the female market, the younger kids market or non savvy gamers with emphasis on motion control, hence why the performance of the wii and gamecube isn't that big of difference as there was no need to concretrate on performance.

it's interesting if they actually focus advertising and marketing animal crossing way back in 2001/02 ( i lived in uk during this period i don't recall seeing any adverts) and towards female market, they probably could off sold 10 mil more gamecube consoles