Nintendo is having a mid-life crisis. The Gamecube's had a troubled life so far and is failing to impress, while at the other end of the spectrum, the GBA SP is selling like hotcakes.
It was all so promising to start with. Nintendo were making a brand new console, which was going to be able to link up to their new Gameboy. How could it possibly fail?
The sad thing is, is that it was built with the wrong ideas in mind. It was an all gaming machine, and developers would be prepared to work on a different media. So they used the smaller, 1.5 GB discs instead of the standard 4.7 GB DVDs used by the PS2 and the Xbox.
The result of this is that it failed to impress those who wanted an all round 'entertainment centre'. It couldn't play DVDs, whereas the PS2 and Xbox could. Then there was the smaller capacity disc.
I was skeptical from the beginning about using this type of media. Surely there wasn't enough room for some games? Unfortunately for Nintendo, I seem to be right. PC ports have appeared on PS2 and Xbox, but not Gamecube. If they do appear, they've turned up 6 months late, after a long conversion process.
Although Nintendo's own games are good, there still aren't enough third party developers to make games for them. Because of this, the console's appeal has dropped. Also, The Resident Evil franchise hasn't proved to be hugely lucrative, as they expected.
Their online plan has been practically non-existent. Only Phantasy Star Online is currently online, and this looks like the only one there will be. Nintendo have shunned online gaming in favour of LAN games, which they will unveil at this year's E3. This shift away from online gaming could prove to be a big mistake.
One of the biggest flaw in Nintendo's strategy has been the 'kiddy' image. It has a childish image because it looks like a toy and the games as similarly aimed towards the younger audience. There simply isn't enough for adult gamers, no incentive to buy the Gamecube over the Xbox or even PS2.
I'm afraid that their strategy is all wrong. Their perception of gamers seems to be teenagers and younger. The fact is almost the opposite. It's teenagers and adults who play games the most and have the disposable income. The average age of an Xbox gamer is 25, not 12. Microsoft and Sony are getting their income from this older age group, not the younger demographic.
This all has culminated in less sales than expected, and has cost the company dearly. The competition is pulling ahead, and the Gamecube seems doomed to failure. There's a lot of nervousness in the industry about the console's future. Memories of the Dreamcast and N64 failures are still fresh in the minds of the retailers. A recent episode involving the Dixons Group and Argos in the UK - had either company not re-evaluated its decision to stop stocking the console - could have proved fatal for Nintendo.
I'm not writing the Gamecube off yet, but Nintendo really have to try harder. They've announced that they will build another console, so please Nintendo, get it right next time.
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