Nintendo's marketing stratagy is developing inovative ways of interacting with games. That is why he is stressing the interface and "engaging" content rather than bleeding-edge technology and immersion.

It's working, too. The Nintendo DS, in it's short life, has almost sold as many units as the Play Station 2. Currently in Japan, all of the top ten selling games are for the Wii (which also sells like hot-cakes).