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What I say is, someona from Nintendo(don't remember who) said that they will make a powerhouse but the specs won't be the console main caracteristic. Like, DS was powerhouse when released but the main caracteristic is the dual screen.

I think Nintendo may come back to the graphical race because Sony and MS will fight for the casual market, they will fight for what belongs to Nintendo now. And I think Nintendo need to fight for what belongs to MS and Sony this gen in next one.

Sure, for 3rd party a dominant console in the market is pretty good, since them you don't have to make a game for several systems making the budget goes even higher.