Danc at Lost Garden has a long post about Nintendo's development cycle, and why it differs so greatly from Sony and Microsoft's approach. Short version: Microsoft and to a lesser degree Sony release games aimed at the hardcore gamer demographic (e.g., first-person shooters) whereas Nintendo profits by innovating and then banking on creating the classic game based on that innovation. Then, when the competition jumps on the bandwagon and starts creating games for the hardcore player, Nintendo innovates again. It doesn't always work, but when it does it leads to really fun games that even a casual gamer can enjoy.

An excellent article for the Nintendo faithful (I don't play videogames much anymore, but when I do, it's usually Nintendo). (via Luis Villa)