I was a teenager when I had the PS2 and Gamecube. Heck I went to University then too. The PS2 *was* my DVD player, and subsequently saw way more use than the Gamecube, my PC was so old it didn't have a DVD drive. We had "broadband" which back then was like 256kbps, so torrenting a film would literally take days.
I sometimes think Nintendo doesn't realise that a lot of kids have a TV in their room with their consoles, and that the console isn't in a living room that people are competing over.
Even the phone app market is slowly but surely eating away at their handheld market share.
I mean really the reality is these days, that most systems can do everything Nintendo's can do - but better, and Nintendo relies on unconvential gimmicks to shift systems and the games that tend to make the best use of these are first-party ones. Which is probably why they get so much flack these days for not evolving with the market, and trying to ride on the coattails of the Wii's success with the misguided Wii U and the Wii's library of large amounts of shovelware still hangs over them.
They still make great first-party games, but their market share is probably going to stagnate or dwindle unless they seriously rethink the angle they are coming from - especially as the Wii U, pre-launch during the reveal at E3 2011 (I think, might've been 2012), was angled as being designed to bring the core gamer back into the picture and then they botched it. I think the crux here is that a lot of gamers want to like Nintendo still, but Nintendo's archaic stance toward proprietary distribution methods and hardballing with third parties means that people will no longer see the value in giving £300+ to Nintendo each console generation to play the latest iteration of their beloved childhood IPs. More to the point, older consumers buying for their families may not see the merit in doing it when competing consoles come with additional value in terms of multimedia services and connectivity. Sure most people probably have a myriad of devices they can already access those services with, but when Netflix is one of the most used things on XBOX Live, it's kinda telling about consumer habbits.