They don't absolutely need a game in every single genre to compete, but it sure helps out. For instance, the N64 had almost no RPGs. It did hurt them, but they were still able to compete. That's why PSX did so well. It had games in every single genre that topped the games on other consoles.
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Jin@netlane.com
 
In memory of Jack Buck & Darryl Kile. 
Good luck this year St. Louis!
"You don't need a reason to help people" -Zidane (FF9)
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