Nintendo's making some mistakes, but its overall strategy of finding new markets is overshadowing them.
I think people put too much emphasis on the negative aspects when considering why consoles are doing well/poorly. By this logic Wii SHOULD be failing due to friends codes, poor online in general, a mediocre game lineup, small internal storage, inferior graphics, a dumb name, not enough buttons on the controller, bad third party support, etc.
Sony's price was definitely a mistake, but Microsoft's price made a lot of sense. If Microsoft hadn't raised the price a little bit, we wouldn't be getting as much of a graphical leap...and that's the yardstick by which game consoles were measured for 4-6 generations. It's not that Microsoft screwed up, it's that nobody could have guessed that a system with basically NO graphical improvements and a crazy new controller would be so popular...even with the price difference. After all, GameCube was $100 cheaper than the other two, and that didn't help at all.
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