your mother on 18 May 2007
First off, the title is a bit... redundant. 
Nintendo products have always been cost-effective, from the company's perspective (they don't lose money to be offset by software).
Second, any company who wishes to have a prayer of a chance in the console industry needs to innovate. This is not something exclusive to Nintendo. Sony and Microsoft, and for that matter, anyone else who decides to take the plunge will have to innovate.
