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

[Leynos]

There was a point 3DS was going to use a Tegra 1. A point PS4 was going to have 4GB of RAM. PS3 was not going to have a GPU but two CELL's to power everything. Hell even during the SEGA Saturn's development Sony was going to make it for SEGA. Early plans and early concepts is just that. Things change quickly developing a console.