I agree with Jonny, it does seem that most people in America (outside of GameCube owners) don't believe that the GameCube even exists.
According to recent NPD numbers, the landscape is spread out at about 25 million (PS2) vs 9.8 million (Xbox) vs 7.8 million (GameCube). Yet some people honestly seem to think that the XBox has a shot at beating the PS2, while the GameCube is going to drive Nintendo into oblivion. What's wrong with these people? And that's not even getting into the amazing financial differences between the two consoles.
But then again, this shouldn't surprise me. I remember the hoardes of people ignorantly claiming that the PSone was more powerful than the N64. And before that were the people claiming that the Genesis was more powerful than the SNES, because of it's superior clock speed. Stupidity is a very powerful tool. And Nintendo's favorite "make great games, and wait for word of mouth to spread" advertising technique requires that the masses have brains, so it doesn't always work.
I think one of the things helping the XBox is the fact that it failed miserably in Japan. Yes, I'm saying that actually helped it, at least, it did in America. The XBox got pidgeonholed as "the American console". I've seen intervies with a number of Japanese developers who said the picked the XBox because the games they make are "American-style", so they wanted to make games for "that console that's popular in America". I wouldn't think that Japanese developers could possibly be that stupid, but I guess they are sometimes. I mean, the console that's popular in America is the PS2. Just look at MGS3. This effect isn't helping the GameCube at all, because when a Japanese developer wants to make a Japanese game, they just pick the PS2.
I don't think this "image problem" could ever prove fatal to Nintendo, but if they really want to do better, they have to go all-out in trying to fix things. No half-measures. Nintendo seems to pull it's own punches far too often.
I do believe that as a "third party friendly" company, Nintendo has come a long way and learned a lot, but they're still not what they could be. Like for instance, I'm quite floored that Sega's "Feel The Magic" is going to be a DS launch title, but lets take this one step further. Do I believe that say, Konami will be making a "Tokimeki Memorial" title for the Revolution? Heck no! Gainax's "Princess Maker 4" is being made in Japan, exclusively for the PS2. Could I see a GameCube port happening? Hah! That's a joke.
Right now, I believe that games like Feel The Magic and BMX XXX (which is a bad example because it was garbage) are "token games", and don't reflect on Nintendo becoming an "open" home for a diverse selection of developers. Resident Evil? That was Nintendo not looking a gold-plated gift horse in the mouth.
Hey Nintendo! If you want to change this, you have to do everything in your power to make things better.
By the way, halting your production of the GameCube mere weeks before a price cut, then having major shortages, killing your entire momentum, was just an awesome idea [/sarcasm].
Here's a thought, what would've happened if you decided to risk losing $50 on the price of the Cube back at that price drop? It would've been a mere $50, wouldn't it? Do you think that would've maybe moved a few systems? Oh wait, you were supposedly at your maximum production capacity at the time, weren't you? Do you think it was even possible for you to have beaten the XBox in America, let alone the PS2?