Come the Revolution
GamesIndustry.biz has a piece looking at what game developers think will be required to ensure that Nintendo's Revolution doesn't go the way of the GameCube. From the article: "While this mutual exploitation between indies and Nintendo may grant the GameCube some stay of execution, the Kyoto giant's next home console will require a very different approach to marketing. Solid details about the Revolution remain sparse, yet Nintendo has stated it hopes to attract a different audience to the one being aggressively chased by Microsoft and Sony. This is the console that will support a back catalogue of twenty years' worth of Nintendo games, as well as new titles utilising the intriguing new controller."
As far as I know, the game cube is far from dead. In fact, my roommate and my neighbors have been playing Mario Kart Double Dash, Mario Tennis, Mario Party 4, and Super Smash Bros. until 3am a many of times....
But Sony managed to sell 100 million Playstations and 100 million playstation 2s in the same competitive environment.
if 60 million is the baseline, and nintendo splits the 60 million with sony and microsoft,then your arguemnt would make sense, that it loses consoles when there's more competition., but that's not true.