I think it's a really smart strategy. They avoided the raw-power hardware arms race and are thriving because of it.

It seems like Nintendo picked up on what makes video games so fun early on while a lot of studios struggle with it even today: The gameplay comes first and it has to be fun. Art/style comes next, then way down the list is graphics. Graphics are the only thing about a video game that get worse with time. If you focus on making fun games that have a distinct style, they will remain fun forever. Importantly to a corporation, they also remain sellable forever.

Nobody talks about crysis 1 anymore, but people definitely talk about wind waker.

Yeah, and parents love it too for that reason. People really seem to underestimate the market for children (and parents / family gifting and indulging said children), not just with gaming but also with e.g. youtube.

To add, people also underestimate mobile gaming; westerners still look down on it compared to console and PC gaming, despite the financials telling a whole different story.

It's not really a lower-cost alternative due to cartridge prices and no sales.

I chose Steam Deck instead of the Switch. Yes the SD is more expensive, but it already supports most of my existing Steam library and I can buy new games on sale.