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Chasing MS and Sony down the rabbit hole is a recipe for financial ruin. Reminds me of Kodos from The Simpsons: "They constructed a board with a nail in it, but they won't stop there. They'll construct bigger boards with bigger nails, and then they'll construct a board with a nail in it so large, it will destroy them all..."

Nintendo needs to make a system with modest power so it can sell units for a low price point but still make a profit. Front load some "killer apps" and consumers and third parties will come. Maybe not Rockstar and Bethesda but smaller third parties and independent studios will most certainly come.