Nintendo gets a pass Just because they're Nintendo That Sony Isn't Allowed To Have.
Imagine for a moment that Sony had come out at E3 2006 and announced that they were just releasing a budget console for $250.00 that was only a couple of times more powerful than the PS2 and they were going to stop making or having as many core games like God of War, Tekken, Gran Turismo, Final Fantasy, and Metal Gear Solid on their next console, but instead that they wanted to concentrate on motion control sports, dance, and fitness titles. What do you think would have happened to their stock prices, and their investors, and their reputation in the industry if they did that? Basically they would have been dead in the water on that day.
However due to their failures in the N64 and Gamecube eras, Nintendo was able to step in with a new idea, get lucky with it, and apparently it's the best thing ever.
People tend to not realize that Nintendo just got lucky with the Wii this gen. Meanwhile, Sony's done an excellent job with a console that cost $600 at launch.