I can't read this thread. It's gotten too big. My take on things:
-Nintendo didn't do anything new this time. No Mode 7, no analog stick, no Wii Remote. It was just a carbon copy of its competition. Nintendo couldn't beat Sony at their own game. Nintendo has always thrived by redefining the game.
-No DVD or even CD playback. The new medium was a big deal at the time of the PS2 launch. Like there were people who bought a PS3 for Blu-Ray, there were probably way more that bought a PS2 for DVD playback. Most of the PS2 magazines at the time featured a DVD section. I know the Official Playstation Magazine and PSM sure did. The Gamecube only had games. The competition had games, movies, AND online gaming.
-Console design. Who the fuck designed the Gamecube? It was a purple box with a handle on the back. It looked horrendous. I was ashamed to have that thing sitting on my entertainment center. And there were a few games that I was ashamed to buy at the time so i sent my little sister to buy them for me. Sony and Microsoft played up Nintendo's kiddie image and Nintendo suffered for it. It wasn't a "Family Console" at the time. It had the feeling of "Kid's Console.". Even a kid doesn't want a kiddie console just like a fat guy doesn't want a fat woman.
-Raw power. The Xbox didn't have the stand out library that the Gamecube had but it had third party support. Before the end of the generation, it was widely accepted that the best version of any third party game was going to be on the Xbox. The 'Cube was no graphical slouch but those discs hurt it. There were full features, audio tracks, and levels left out of games like True Crime, SSX Tricky, and Splinter Cell. Nobody wants a gimped version of their games. I bought True Crime for the 'Cube and took it back. It didn't have nearly as much licensed music, dialog, and side missions as the PS2 version.
-Xbox Live. I didn't have an Xbox but when I heard about the things going on on Xbox Live, I admit i was jealous. These guys were playing each other, downloading characters and levels, and sending each other messages. The Playstation didn't have this. The Gamecube didn't have this. It made Xbox stand out among the newly forming online crowd.
-Software droughts. The best games on the Gamecube are some of the best games of all time....but I remember a lot of times where there simply wasn't anything on the market for me. I'm the kind of guy that buys tons of games but there was a point in time where all we had was Geist, Star Fox Assault, Mario Party, and Chibi Robo. It was like Nintendo wasn't even trying anymore. The first few years were great. The last few years were embarrasing.