Also I think one misnomer that some Nintendo fans have latched onto is that somehow the audience that Sony and MS target is not "mainstream".
Here's a fact the PS3 and XBox 360 had a larger audience than the Wii collectively and even individually almost matched the Wii for userbase.
You can't just ignore this audience that IS the mainstream gaming audience. To ignore it is basically to admit you are aiming for a niche audience or attempting to compete head on with Apple/Google for $1 casual consumers (you'd be better off competing against Sony/MS in that case).
The idea that making a cheap-kids console is some safe haven for Nintendo is equally misguided ... there is tons of competetion in that space, in fact there are more casual/cheap-o games being made today than any other genre period and they're free or dirt cheap.
