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Engadget analysis: How the GameCube became Nintendo's second-worst-selling console

An Engadget retrospective explains why Nintendo's GameCube, with only 21.74 million units sold, failed commercially, citing its toy-like design, low-capacity discs, and lost third-party support.

AI News Feed · 2026-09-01 08:15

The analysis points to several factors behind the commercial failure. The console's colorful, compact design and integrated handle made it look like a toy, and that image did not appeal to the teenagers and young adults who had grown up with Nintendo's earlier systems. The controller also drew criticism, with an oversized A button, an unconventional button layout, a small D-pad, and no second analog stick, which complicated gameplay in many titles beyond games like Super Smash Bros. Melee.

Another key factor was the choice of a proprietary optical disc format. While the PlayStation 2 and Xbox used DVDs that stored up to 8.5GB, GameCube discs held only 1.47GB. That limited capacity forced Nintendo to compress video and audio files, leading to lower-quality cutscenes and sound. It also meant the GameCube could not play standard DVDs, cutting off a popular feature that helped the competing consoles win over consumers. The company adopted the format partly to combat piracy and avoid DVD licensing fees, but the drawbacks outweighed those advantages.

The format and weak hardware economics also pushed away major third-party publishers. Engadget notes that Rockstar Games, EA Sports and Square Enix initially skipped the GameCube, despite around 600 third-party titles eventually appearing on the system. A particularly damaging loss was Rare Ltd., the British studio behind hits like Perfect Dark, Conker and Banjo-Kazooie, which left Nintendo for Microsoft, taking those franchises to Xbox. As a result, the GameCube leaned heavily on first-party software, which was not enough to sustain the platform.

The article also mentions that the Dreamcast, which used a similarly limited GD-ROM format, suffered from some of the same problems, including the loss of support from major third-party publishers and the absence of a built-in DVD player. The GameCube and Dreamcast both struggled to compete with the PlayStation 2, which became the dominant console of that generation.