To BackFire: (finally an easy username to spell!) 🙂
Gamegear? That bulky, grey thing with that drained the batteries like a sponge? Yeah I remember it. Sega was competition. But certainly not SONY competition. Sega only made games like Nintendo. Fans like Nintendo better. Sega lost. Sega's in the dumpster. Sony is a extremely formidable competitor. They beaten Nintendo in the console wars, in video game sales, and annual profits in one fell swoop. Who's to say that they won't beat Nintendo in the hand-held war?
Gamecube makes SOME money. But not ENOUGH money to keep them going. The new Zelda game and a new Mario game will give them a few strides but its only delaying the inevitable. Trademark titles can only carrry them so far. As I said before, Zelda and Mario isn't going to put a dent in their deficit. Sony has about dozens titles that make them money. Nintendo only has their trademarks to rely on for profit. Why did you think Nintendo signed on Capcom for the Resident Evil series.
I agree with every part of the third section of your thesis. "Strange design decisions and weird gimmicks" (the Gamecube controller is terrible for fighting games!) has been holding them back. I really hope that Nintendo wises up and recognizes the wave of the future. Old school isn't cutting it anymore, no matter what the Nintendo fanatics say.