I think in Nintendo's eyes they did what they could with the GameCube
Exclusive Resident Evil series was a monstrous get.
Several more exclusives from Capcom (Viewtiful Joe, Killer 7, P.N. 03, etc.)
Exclusive Tales of Symphonia and Baten Kaitos RPGs from Namco.
Exclusive Metal Gear Solid game from Konami.
Exclusive Final Fantasy spin off game from Square.
Link in Soul Calibur 2.
Partnership with Sega and Namco and Nintendo to create the TRIFORCE Arcade boards
It must have been frustrating to get basically no traction. Sony had an iron lock on the main Final Fantasy series and there really wasn't anything Nintendo could do by that point.
They should have compromised with Squaresoft in 1995 and not let them leave for the Playstation and take Final Fantasy VII with them. They were so close too, just crazy that Yamauchi was so convinced of CD-ROM being bad. Even Nintendo themselves knew cartridges were a problematic format due to being very expensive, that's why they made the Famicom Disk Drive back in the 80s and the Famicom Disk Drive was actually supposed to be the only way Famicom/NES games would release in the future.
