OP has the right idea. In the game business, the hardware is the gameway to the software. Nintendo designed both the DS and Wii that way. Sony and Microsoft, however, make systems that do "everything," and play games, but they don't focus on the experience of the game. Nintendo created a lot of software that complimented the DS. I haven't seen Sony do that with the PSP.
Which is Sony's big problem right now: they are not a game company. Nintendo has all of their departments integrated (as a software/hardware company) and is only a game company. Sony is a conglomerate. Their developers are not really "Sony," but are 3rd parties they own. They are not as tightly nit as Nintendo. That, and they lack the talent Nintendo has. In the end, it all comes down to software.
