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thekitchensink said:
Microsoft and (especially) Sony had to take gargantuan losses in order to release the 360 and PS3 at prices that were even remotely affordable. Those are giant corporations with tens of billions of dollars and other divisions to help prop the gaming divisions up for awhile.

Nintendo, being solely a game company and being last place in terms of console sales, couldn't afford that risk. They had to make money even if the Wii sold only five million. As seen in the huge shortages of the system, they couldn't possibly have predicted the wild success it was going to be.

But if the PS2 also suffered losses while the cube barely did, why couldn't they simply adobt a cube strategy? I know viper is answering that pretty well, but I want to see other POVs and I've asked him follow-up questions already.