What's eating at Nintendo?

[Yoda9864]

I have great respect for Nintendo. They didn't hop on the bandwagon on every new thing that came out, (harddrive, online, dvd, etc.). They made their system the way they wanted it and stood by it. I have enjoyed every nintendo system to be released (except that horrid virtual boy, good concept, it just sucked though).

I have to say though, that it seems like Nintendo really has to prove themselves to be a serious contender with their next console or else I think Nintendo won't be able to ever recover from it.

As far as the handheld market, I think it will take a while for Nintendo to be dethroned as teh unquestioned ruler of the portable market. But I do think they will need to make GBA2 a serious upgrade from the GBA. I think the PSP poses a serious threat, but it wouldn't be as much of a threat if Nintendo released a new GameBoy system capable of pulling off full 3d environments.