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TheBraveGallade said:

I mean... nintendo has never really done too well when they tried to appeal to the market by sheer hardware power.

its almost always been when its the most affordable option/ has a killer feature/app while still being affordable that they won.

they barely outsold the genesis in the 16 bit war, completly bungled up the n64 and gamecube sales wise, and when they tried to one up the competition by opening the generation like 2 years early with the wii U they crashed and burned.

even more so with handhelds. gameboy had none of the flashy expensive stuff and it blew everything else out the water by being cheap and long lasting battery wise, and the 3ds struggled initially untill they dropped the price by 40% (something that the more advanced vita, already loss leading at 250, could not follow).
the only sucess i can think of where nintendo blew competition out of the water and working was the GBA, which with its superior hardware and decent price literally blew away any semblence of niche competion in the hardware space that still existed at that point.

Yeah, that's all true.  I believe they are further behind tech-wise right now than they ever have been though.  This is the first time that I've ever really felt like it was a problem. But, if they're going to stay two generations behind everybody else, I imagine it won't be the last.