I doubt nintendo would be able to compete with a standard console any more. I'm happy with what they're doing with the wii though, there is now a real distinction between the types of consoles you can buy. I mean, in the last generation there were differences between the hardware, and the software, but still, they weren't that distinct. An Xbox was only so much more powerful than a GC which was only so much more powerful than a PS2, and they could all play virtually the same kind of games.
But now you have real choice when buying a console, you can go all out on a PS3 getting games that take advantage of it's physics and graphics capabilities, similarly with Xbox360, or you can pay a lot less and have a wii with games that take advantage of it''s unique control systems, and in doing so have a console that your dad/mom/grandad/brother/sister might end up playing, which is always more fun than playing on your own
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