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Originally Posted by Bond
Yes, because Nintendo can't compete with Sony and Microsoft. The videogame industry has become a big business industry. Nintendo simply can't compete with Sony and Microsoft, so they are trying to find a niche that will at least give them some honorable sales.
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Hmm do you think they can't or won't? To compete they'd probably have to develop shooters like Halo and other "mature" titles that would damage the whole family-friendly philisophy. Plus they'd have to make a console with the latest in cutting-edge hardware, and possibly start taking losses on each console sold. And even if they sell a much greater number of consoles this way they may or may not be as profitable as they are now. And of course if you look at the gaming industry as a whole (handheld included) Nintendo is 1st place with Sony a distant 2nd. They're beating Sony and MS overall, just not in the specific realm of home console sales (which they are still making money off of).
If the goal is simply to sell more consoles, all they'd have to do is give it a $99 price tag and watch as their sales go up and their profits go down.