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I think Nintendo's "Blue Ocean" strategy has contributed greatly to their success. They want to be dominant in markets where there is little or no competition. Fortuitous events (for Nintendo) have allowed them to compete this generation in a space where there is not much competition, hence they do well. Nintendo has been very good lately (and historically) at establishing genres that they get to then define and profit from. I also attribute some of Nintendo's success to their old fashioned business plan of making profits and a history of being profitable in the long term.