Nintendo's strategy made sense though. A bunch of people didn't want to hear that the gaming paradigm might be changing, but that's besides the point. Personally, I didn't know if they were going to win or lose with their strategy, but I thought that it made sense.
Right now I'm confused about their decision to abandon the Wiimote though. If they're upset that they didn't get as many 3rd-party titles, IIRC that had more to do with the hardware constraints of the platform (I remember it being described as two GameCubes strapped together).
> they could sit out a whole console generation and still produce
> another one... don't count them out so fast.
Isn't that the story of Sega though? The Saturn was a flop, and then the DreamCast wasn't enough to rescue them from becoming a software-only company.