Was Nintendo right to opt out of the graphics arms race?

[Leynos]

burninmylight said:

Leynos said:

It also got a lot of good original stuff just for it. Nintendo could not do the HD reace in 2005. Not financially smart for them. Gamecube already proved the arms race they lost and were not getting that market share back.

Not financially smart to do an HD GameCube, totally agree. What I'm (and I think what Louie was) trying to say is that the Wii could have been a console in the same ballpark with PS360

That would have killed Nintendo. It's naive and dumb to think otherwise. They had no market share. No one was going to support a 3rd $400-500 console on those other systems level and certainly with devs costs that generation. Nintendo would not be able to split dev costs between two platforms. They would be stretched too thin. You know who also stretched themselves too thin. Atari. SEGA. Nintendo is not selling 255 million systems if they went the HD route. They went with Wii and DS and sold more systems in one generation than any console maker ever has and no one has come remotely close.