Azelover said:
Nintendo is maintaining a leadership of both territories, the handhheld and home consoles, so they're in the equivalent of Genesis and Gamegear period of competition. This means they'll have competition, but whenever one goes down the other goes up. When Nintendo lost home console leadership, they gained a monopoly in handhelds.
Right now Nintendo is about to lose their leadership in handhelds to iOS, so I expect their next home console to be so groundbreaking it will reward them a monopoly.
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Well, actually, Nintendo was largely unrivaled in handhelds ever since 1990, with the GB having proved itself to be here to stay at that point. Nothing else came close to it throughout big N's years of home console dominance.
But the late 90s, although still the biggest seller, GB relevance was really fading, and it didn't recover massively until 1998 with the release of the GBC and Pokemon outside of Japan.
There is no correlation between Nintendo's success in the two markets. Both were up 1989 - 1995, both were (more or less) down 1996 - 1998, one was up and the other down 1998 - 2006, and both are up 2006 - present.