Great post from StarBlue. Smart guy without a doubt.
I realize most of us in here are already fans of Nintendo and will defend it to the end but that doesnt mean you don't worry about the stability of the brand at times. There is a lot of heat on Nintendo right now.
So in light of some of hte arguments I feel it is necessary to bring out a few points.
1) Microsoft is losing millions on Xbox right now and have been working on strategies to turn this around. Namely, releasing a new version of the hardware that will hopefully make people want to buy it for a change, and possibly pay nearly as much as it costs to manufacture it. Nice plan! However they need to get out of the RED before they are any kind of threat to the GC. First things first. They are in no kind of position to take out the big N in the console wars. As was stated repeatedly, Nintendo designed a brilliant console with the GC that is user friendly, powerful, and inexpensive to manufacture. Any reason to mothball this design? NO! And not in the forseeable future either. MS has to eat from the scraps that fall from Nintendo's table. (HINT: Rare)
2) The Xbox was obvioiusly designed by the same kind of people writing this report. People who don't appreciate the true meaning of game consoles. Small, simple, colorful, and with tons of great EXCLUSIVE games. The Xbox is none of these. It is a PC in a smaller box with a more poorly designed conroller than even my Microsoft Sidewinder GamePad I have had connected to my PC for the past 5 years. If you want to win in the console market you should first know what the heck its all about.
So why would the Xbox beat Nintendo? Better hardware? Depends on how you define better. The PS2 is the oldest of the bunch and no one even pretends to be a threat to Sony right now. So apparently having more powerful hardware is not enough. As far as DVD playback, yes its a great bonus and I still use my PS2 for my primary DVD player (yeah you heard me, Adam

but DVD players are so cheap now who really cares. And that $90 player from Radio Shack comes with a remote... bundled for FREE? WOW!
But I digress, the bottom line is oodles of gamers love Nintendo, and we have kept them very profitable over the years. If N can survive the N64's stink cloud against the likes of the PSX, then they have nothing to worry about now. The CG is 100 times as fine a console as the N64 ever was and is gaining much more respect than the 64 had. The Xbox is not even targeted at the niche that kept the '64 alive for so many years, and that audience is just now graduating to the 'Cube.
My personal observations when I go to Best Buy is about 8 people in the GC aisle, about 10 buzzing around the PS2 games, and a nice tumbleweed rolling by the Xbox stuff way on the other side. It's the same the 3 locations I've been to here in Houston. Theres my freakin market observation. I had plans to pick up an Xbox over a year ago but as of yet they havent given me a reason to. I guess thats because having the box with the highest clock speed doesnt make be all giddy with joy. Oh yeah, maybe thats because I already have a PC? Speaking of which, therein lies my ONLINE STRATEGY. I dont need any more network cable running all over my apartment.
BTW I am also an IT professional and I know people who work at MS. I have nothing against MS at all, I use their products almost exclusively. I just have to be honest and say I don't see any real skill in winning the console market with them. Most of the other guys I work with in this field are fans of the GC as well. Go figure, market guys.
Just my $0.02.