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DanneSandin said:
I don't think Nintendo COULD have competed in the Red Ocean against Sony and MS; Nintendo can't afford to loose that much on HW! They made the right choose with Wii: it was cheap and it was something new and it made loads and loads of money for Nintendo. This gen they could get back in the Red Ocean, but had they gone that route next gen the ocean would have been red from the bleeding Nintendo would have taken when launching a console on par with PS360.

Finding that Blue Ocean is what saved Nintendo.

@bold. I agree, but that's not the argument. The argument is not Nintendo's salvation. The argument is Nintendo's dominance in the Red Ocean, and consequentially, their dominance throughout the market. Clarifying: I never said the blue ocean did not save Nintendo.

As for if they could compete or not, the gamecube says yes. I've argued this with others, but it is certain that Nintendo could have made a more powerful system than the Wii, and the U is an example of that. I'm not asking for on par with PS360, and I don't believe that would have been necessary. I would argue that Nintendo could clearly have been more competitive on both the HW capabilities of the Wii, as well as the output of high quality Red Ocean games like Metroid Prime. That didn't happen. How much would that have stolen from resources evergreen product development? Not that much imho, we would have lost 1 game (DKCR) with 1 red ocean product.