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

[Pemalite]

Wman1996 said:

Leynos said:

In 2006 I believe it was reported Wii manufacturing costs were $160.

Which means that Nintendo would not have charged less than $199.99 since they typically make a profit on hardware, even at launch.

3DS was sold at a loss for a time following its price cut. GameCube was most likely sold for a loss when it was cut to $99.99. Wii U was apparently sold at a loss from the beginning.

Even with its weak processing power, Wii was not going to cost anything below $170-$200 at launch. 

Nintendo was actually originally planning for a $100 price point for the Wii.

With that said... 
If Nintendo had a digital output (HDMI)
And threw in 256MB of GDDR3 memory on a 128bit bus.
And clocked the GPU at a modest 450mhz with an 8-pipeline layout~
And the CPU at 1Ghz.

It would have given the system much better creds.

It didn't need to match or beat the Xbox 360/Playstation 3, it just needed to be good enough.