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Nintendo is a very smart company, they have a business/production plan and it's air tight. Whats going on with the competitors is none of their concern. They produce what they need to sustain the company, and try to keep their consumers happy. PS3 and 360 have an abundance of games coming out each week, the market is not big enough to support them all, look at how many developers have shut their doors over the last few years trying to compete.

TLDR, Don't worry about Nintendo, because Nintendo is not worried about Nintendo.