Lost Garden on Nintendo's Innovation

Lost Garden is running an incredibly in-depth article on why Nintendo is smarter than everyone else, covering their strategy to create and control new genres, and why creating hardware is so important to that strategy. The article is really, really informative, if you can get through the dryness. Suffice to say: Nintendo makes money because it doesn't cost them much to create hits. In fact, it costs them half as much to make a game than it does Microsoft.