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Don't forget, Nintendo played VERY dirty in the NES and SNES days, and lots of companies ended up hating them for their dirty tactics used against them. One of them ended up taking over the industry, after Nintendo backstabbed them (Sony), so I think Nintendo's smart to not play dirty, anymore. It didn't end up doing them any good. Oh sure, it ended up with them getting better products, but developers generated bad feelings towards nintendo, and when they got the chance, they jumped ship.
Ok, that's a pretty broad assumption. But you can't deny the fact that Nintendo's tactics came and bit them in the backside when Sony emerged with the Playstation.
Side note: Nintendo didn't backstab Sony. That's just how Next Gen magazine said it happened. Next Gen was famously Sony-biased (it got so bad that it became a running joke with them), and got that quote from Olaf Olaffson, one of SCEA's highest-ups. Next Gen was the first magazine to really show us the "behind the scenes" stuff of the videogame industry, but I think a lot of that had to do with SCEA. They won over Next Gen by giving them all the inside access they wanted, and made Next Gen who they were. Other companies started to open up, but SCEA was the first, and the most-open to them.
Basically, Sony partnered with Nintendo for some SNES technology deals. Sony turned on Nintendo and tried to kill them with an SNES CD (called the Play Station). Nintendo didn't lie down for it, and got onto even footing by announcing their own SNES CD. Sony took Nintendo to court. Sony called it a "stab in the back" and "legal trickery", since the Japanese courts ruled that Nintendo was allowed to make their own SNES CD, since Sony had clearly violated a "good faith" clause. Sony then killed their own Play Station (after making, and then breaking, a deal to actually "partner" with Nintendo on the SNES CD), and started their own 100% Sony-owned "PSX", while Nintendo's SNES CD never got out of the gates before they saw the N64 on the horizon.
Back to the topic, the PSX "won" against the N64 because of the money factor of CDs, and the fact that it was the developer favorite. The development industry got the idea into their heads that the PSX won because it was their favorite.
The PS2 had proven that to be false. It was always about the money. The fact that the PSX was the easiest to work with, was (for the developers) a lucky fluke.
I do like the "nice" Nintendo more myself, but sometimes they don't seem to get any respect. Maybe when a company like Namco disses the Cube, Nintendo should threaten a little. "Y'know, we're
trying to be nice to you here. You're not helping matters by pulling this crap."