Yeah design choices hurt them (hardware and software wise) along with a late launch.
A GameCube with the following
- Launches in November 2000
- $299.99 MSRP, plays full-size DVDs (through seperate DVD remote add-on for $20-$30)
- Available in Jet Black and Silver, no handle, slightly more mature design cues.
- Zelda: Majora's Mask, Perfect Dark, Sin & Punishment, and Conker's Bad Fur Day moved off the N64 and made into first wave GameCube titles.
Would've done well. At that more expensive price point, I think they could've even bumped the main system RAM to 48MB 1T-SRAM, and made the GCN the hands down better hardware than the PS2.
If Zelda: Majora's Mask had been moved to the GameCube (with upgraded graphics of course), I think people would've freaked out less about Wind Waker, as they already would've gotten a Zelda game that looked a bit more like Ocarina of Time too and they could've taken more time in developing Wind Waker also.