Its not a simple relationship allways though, theres the
"big fish small pond" effect, where some great games in a market of less choice can do better.
That said, the gamecube actualy did pretty darn well as far as third party release's went compared to the N64 which had, like, 1 game a month.
Personaly, while I am always sad when a great game dosnt come out on a format I own, I am not too bothered. There is/was easily enough fantastic cube games to last me its lifetime. As long as Nintendo makes enough money too keep produceing Zeldas, and too cover Jungle-Beat-eqs expirements, Im happy.
But then, I always complete games, and I make sure too only buy a game when I am sure I will want too complete it
I dont care was place Nintendo comes, as long as they make the profit needed to make games I love.
That said, Sony should die a horrible painfull, blu-ray drm infested death
(I'm a Sony-hater first, Nintendo fan distant second)
The Nintendo loyalists would insist that just because you're not number 1, it doesn't mean that you've failed...
Depends what you mean by failed.
Failure isnt a thing unto itself though, theres many types of failure, some of which could be applied to Nintendo, others not.
The fact is, Nintendo rarely, if ever, fails at the
"makeing money from saleing great games" part, which really has let them survive and be a healthy company, even when in 3rd place.
(allthough the difference in worldwide cube/xbox isnt much when you factor in the xboxs lack of the japanease market....theres more room in the market then most give credit for)
Of course, there is a critical threshold below which the userbase would start eating away at Nintendos core sales. (Mario,Zelda, SmashBros, ect).
But Nintendo seem pretty "safe" in the long run.
And if Nintendo says they are getting new audience with the DS, and Sony says THEY are getting a new audience with the PSP, I am more inclined to believe Nintendo for some reason

Has Sony got any figures too back up their claims? Nintendo had good stats for the DS non-gamer takeup rate.
What did GC offer that the others didn't? Nothing
Nintendo games.
Sony themselves have insisted that they are not in some head-to-head battle here so by their own admission they cannot win.
Yes, I am always remembering the Sony line:
"It is unfair to compare the PSP with the DS....unfair on them....we are in different markets"
Of course, Nintendo was also insisting that they were in a different market....but Nintendo was scared rather then arrogant.
All that third-pilllar backup plan
Sony is clearing doing ok with the PSP dispite the ds, and its fine for them too point that out, but they arnt kidding anyone with this stuff.
And people arnt just accepting the DS graphical shortcomings because its a hand held, and with battery life, they accept them because there are some bloody great fun games,
Exactly.
Its all about the games.