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

[curl-6]

Leynos said:

burninmylight said:

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. 

There's no need to call others/their opinions dumb. Let's keep this civil please.