| Mandalore76 said:
To that, I still point to the Gamecube. It was a $100 cheaper than it's competition, not underpowered by the standards of it's generation, and yet was still one of Nintendo's lowest selling pieces of hardware.
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Because it was a year late to the market and third parties had already pledged exclusivity to the PS2. FInal Fantasy X, GTA3, Tekken tag, Metal Gear Solid (all of the mega sellers of the time) were PS2 exclusive and arrived before or literally during the gamecube's launch. The gamecube really didn't do anything much wrong, the PS2 was just unbeatable (+DVD support helped). Similarly nothing the XBox could have done would have changed its future much. Third Party exclusivity was the norm then because each platform was drastically different, and everyone picked PS2, that is no longer the case now.
1. Nintendo will be early, not late. The same way the PS1 and 360 being early allowed them to make huge ground.
2. Third parties are no longer exclusive to sony just for the sake of being exclusive, despite some Nintendo fans thinking third parties just hate Nintendo (look back at the Wii U's third party launch support) the majority would support them if they made a console targeted at their said audience (core gamers) and was technilogically signifcantly more advance then any system out at the time.
BTW I'm not in anyway entertaining the idea of Nintendo doing what OP suggests, but going the route of power is a really safe bet and the gamecube still outpaced the WIi U quite easily.