I beleive that the lack of HD helped the Wii a lot. Sony and Microsoft are in an arms race right now tryin g to make the bigger badder machine. They can do this and take the loss becuase other departments can make up those loses,. Nintendo onkly does games, so their games need to do well from the start. They also had problems adding HD and trying to compete with the big dogs. They weren't the most popular at the tiome, with the public and 3rd parties.
The solution: go cheaper. And it worked. Rather getting in an arms race Nintedo opted for cheaper and simpler. This has obvious substained their stance in the market and also allowed them to pursue the Blue Ocean statigy. HD won't come to the public's attention till about 2009 and won't bee accepted till 2010-2011. Why worry about it now.
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