If Nintendo sacrificed profit margin for better GPU and such then failed that wouldve cost them a lot. I really dont think Nintendo foresaw the success that they are basking in right now. You can tell by the still supply-constrained Wii.
I also beleive they always design their consoles to always make a profit on the get go rather than take losses at the beginning. Though i really cant back this up.
They arent like Micorsoft and Sony who have deep pockets who can sacrifice a huge deficit at the beginning of the consoles life and try to get back their investments through its cycle.







