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Does Nintendo intentionally make its hardware really underpowered and cheap in terms of chips to juice profits?

Yes! Famously so, in fact. Look up Gupei Yokoi and "Lateral Thinking with Withered Technology".

As another fun fact: the most powerful system has never "won" the console generation. Nintendo only has to be strong enough to realize its and 3rd party's visions. And even then, it can get away with being a little weaker than that line.

Comments like yours are why I come to HN discussions. Thanks for sharing.

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