Just make decent hardware that one can sell at a profit. Trying to outgun Sony or Microsoft who don't mind taking a loss on each system sold is a losing game. They have to be profitable or near profit on each system sold at launch. The launch price also has to be no more than 250-300 max. So this limits Nintendo on having an "inferior" machine compared to the companies that are willing to take a hit on hardware. One must make up for that with compelling software.