I highly doubt the industry would die without Nintedo. Video games are a billion dollar business, and Sony and Microsoft are a large part of that figure. Nintendo is too, but it's not like it's the only thing saving the industry from becoming bankrupt.
And, Nintendo is spitting out the same stuff over and over as well. They're have been at least 5 Pokemon games (all basically the same game) and they keep releasing ports or remakes, that, granted, are of classic games, but it's still the same thing as 15 years ago. Where's the innovation in that?
The other companies are trying new things as well, Sony is has the eye toy (it will come with PS3) and X-box is doing well with Online play with X-box live. Online could be a big market for Nintendo (Mario Kart over the net? Damn straight that'd own. Pokemon battles against anyone? That'd be good) but they don't seem to realise it yet.
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Anyway, the PS2 controller is a dead SNES rippoff.
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Who cares? It works fine, and it's alot more comfortable for me (and all my friends) then the Gamecube controller. Why mess with a controller that works?
I don't want Nintedo to die, I really don't. I've owned every one of their systems (minus Virtual Boy, but I thought that was stupid even when I was a kid and it looked like it'd be hard to play without straining your neck) and I enjoy their first person titles, but I think Sony and Microsoft are doing good things as well. That's why I own all four systems.