My question is, has any Nintendo console (not counting Virtual Boy) actually bombed?
Is GameCube even considered a bomb?
I think, it failed to live up to mindshare and expectations - in hindsight we all have fond memories of the little cube, there were some great games (some of its best titles hold up well and are still very playable today) and on gaming enthusiast forums like GAF the sentiments are shared which make them seem larger than they really were
It barely sold less than what the Xbox did, but it didn't live up to what Nintendo set out to do with it, third party games that were "Mature" (remember that term? before this "core v casual" stuff) didn't perform a well on the Cube as they did on the Xbox, and it was viewed as a "kiddy" console
Iwata came into the Boss chair after the Gamecube had already launched, and Reggie came in towards the end of its life cycle so much of the momentum was already lost (momentum is very important...I think Wii U will have more momentum than everyone thinks but that's another story)
Point being Reggie's excellent end of life Gamecube marketing and Iwata's bold decisions couldn't really come to fruition until the DS & the Wii
I think by the time Iwata really got comfortable he realized the Gamecube was essentially a write off and they had to look to the future. They didn't have to worry about much because the Cube was still making money, their games were still selling, and the GBA was doing exceptionally well
Ultimately though the Cube never did what it set out to do (be the #1 selling console, or at the very least sell more than the N64) and Nintendo realized then they had to change their focus.
I wouldn't call it a bomb, but in the context I think you meant (i.e. not an actual failure a la Virtual Boy) I would say it "bombed"