vonboysp said:
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They aren't directly competing with them...yet. However, since they went an entire gen not really competing with anyone, they are now in the position of basically just losing their marketshare to everyone. MS and Sony are working on cutting into it with Natal/Move and heavy focus on advertising to the 'casual' market. And now Apple has entered into the mix with a formitable handheld unit.
Basically, Nintendo has two options. Come up with something 'completely revolutionary' like Wii and DS again or...start competing at their level.