Going to go head to head with Sony and Microsoft

The BBC is reporting that Nintendo is looking to launch the successor to the Gamecube at next year's E3. Nintendo has fallen to a distant third in the US market, a precarious position for a company that was so dominant during the 8 and 16-bit era.

Disappointing GameCube sales have hit Nintendo's bottom line, with net profits falling by 50%, according to the company's annual results.

In the US, sales have slumped, with the GameCube making up just 17% of the market, according to analysts NPD.

From my perspective I do not understand this dogmatic insistance on creating hardware. I'm under the impression that all hardware manufacturers are still losing money on hardware sales. Why would any of them want to partake in that? I understand that it gives them more control with peripherals like controllers or other alternative input methods but in general it seems like a huge and massive tradeoff. Nintendo's primary strength is publishing. They have a great IP library that sells them a ton of games. I've toyed with the idea of buying a Gamecube just for Metroid, Zelda and F-Zero but to be honest I'd much rather pick those titles up on the PS2. I'll keep my fingers crossed that the next Nintendo system will not flop also or does irreparable damage to Nintendo financially.