Every time I read something like that, I think "Nintendo is offering the use of a free general purpose game engine for exclusives." That would totally get developers, large and small, to make games. I mean, lower dev costs = less risk. Of course, then I think that Nintendo will hide secrets (a la N64 microcode) to give their games an advantage. Then again, if Nintendo truely believes graphical tech prowess will be a non-issue this generation, they would have no reason to do this. Graphics will largely be determined by the detail/quality of art, not code.