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Colour faded with use (in fact the same reason that iPod video is already getting flak, its the same tech for the screen),

battery life was poor compared to the gameboy,

no successful living room console to associate with, not that any were connecting to eachother at that time in any gameplay enhancing ways, but Sega, Nintendo and the NeoGeo could cross advirtise.

I also seem to remember it being the most expensive of the lot (bar possibly the neogeo pocket)