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

[curl-6]

I feel like the Wii would still have succeeded as a more powerful system with a slightly higher cost, as long as it was still reasonably affordable.

The thing is though, it's easy to say this in hindsight, but in 2006 the whole concept was unproven, and if motion controls hadn't exploded the way they did, Nintendo could have been stuck with another failed system, and this time one that was expensive to make and develop for, which could have been disastrous.

They needed to hedge their bets, and making the Wii technically conservative was a prudent move at the time.