More like Nintendo de-incentivize Square from making it on their console. We covered this with Square's direct interviews. They were trying to make it on N64 but the hardware performance and the limited cardridge memory made it impossible to make the game they wanted. After Nintendo's mistakes and demotivating support, Nintendo indeed got themselves in position where they couldnt compete like for like with either MS or Sony. The same experience with less popular games than Sony and MS would have killed them.Yup, we all know that Sony foreclosed Nintendo's ability to compete in the "high performance console" market when they "incentivized" Square-Enix to not release Final Fantasy games on Nintendo consoles starting with the N64. I mean it wasn't like the IP got it's start on Nintendo consoles and was a staple of Nintendo consoles until the N64.
If they continued competing like for like they would have got themselves out of the hardware business just like Sega. Hence why their business model, after GC's underwhelming market performance, changed. Their consoles after that, weren't focused on high performance but on other aspects. Such as low cost lower performance consoles that diversify themselves with focus either on motion sensors or handheld hybrid experiences.
Wii was literally on the level of performance of GC, the WiiU was on a level of a PS360 with an identity crisis (it was like a delayed Nintendo PS360 equivalent that came way too late) and Switch is not even on a level of a PS4 or a One.
Nintendo doesn't compete in performance, online services or not even with the same game profile support that Sony and MS are getting. They are indeed playing on a different field with only some overlapping with the rest of the console makers.
If anyone thinks that a MS or a Sony console with less support of the games they currently get and a generation behind performance than their competitor (either Sony or MS) would do well, they are lying to themselves, unless they are able to diversify themselves out of the experience and games they are known and bought for.
The One got heavily criticized by the customers for a small percentage of less performance. Let alone a generation behind. The customers buying a Sony/MS console are largely expecting a different experience from those buying a Switch.
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