Dean Takahashi from the Mercury News has posted an editorial piece examining the strategy of the three console manufacturers. An excerpt is below. Be sure to take a look at the full article.
John Taylor, an analyst at Arcadia Research, said there are big risks in Nintendo's strategy. Nintendo's audience has always been younger and favored cartoon graphics. By putting less emphasis on graphics, it could continue to lose the older gamers to Sony and Microsoft. But Taylor sees benefits to Nintendo's strategy, such as lower game development costs, and the chance to become the premiere second console in multi-console homes. "By opting out of the arms race, Nintendo is saying that fun is what matters," he said.