Yes its quite obvious Nintendo's revenues, profits, and market share growth over the last 4 years is quite impressive. If someone had invested 10,000 dollars in shares in Nintendo back in 2004 they'd be quite the rich man right now.
However, I don't think outspending people is the way they are going to go about this new found cash load. This is what they could do but its also what could have been done by MS and Sony. MS did do it actually by taking on such heavy losses yet they still been unable to establish themselves as a market leader. Sony tried that with the PS3 and took the losses and it backfired on them.
What I expect Nintendo to do with this "new" found money per se is to buy a few more studios to wrap under their belt like they did with Monolith soft. Obviously with their expanding userbases they will want to release more games so they'll want to expand their internal and external development bases. Thus I could see them buying out companies like Factor 5 in the near future. Other companies could come from buying companies from struggling developers like Midway and EA who's been taking losses recently.
Thus with this they'll be able to have more projects under development which will bring in more money and keep a consistent flow of gaming. I also expect them to use this to work more on the home front with possible partnerships with some big Japanese developers. They already used it once with Tecmo and possibly bought the Fatal Frame IP. Personally I thought they were going to buy out Tecmo but the merger with KOEI stopped that. But they could possibly make deals with such companies as Sega, Capcom, Namco, and Square Enix to further increased development for their platforms. This may already be happening considering the recent announcement of DQX to the Wii and awhile back MH3 to the Wii. I'm sure Ninty has had a little to do with this by making deals with them that if they put it on their console they'll help marketing. Same thing they did with Fatal Frame IV. A lot more respectable than simply paying them off if you ask me.
Finally I expect them to invest more in the online spectrum of their consoles. Already seeing this with DSiware and more channels for the Wii.
So they are going to throw their money weight around but most of it is going to be involved with gaming development and increasing internal/external developing. Not so much on paying companies off, expensive research, and selling consoles for losses at competitive prices. I don't think Ninty wants to make a similar mistake that Sony and MS did. Don't get me wrong a lot with be spent in the R&D department but nothing insane like that of Sony and MS recently.
