Taking Steps to Walk Away:
IGN launched their new Revolution gaming channel with a number of very interesting and highly relevant details about Nintendo's new system. After discussing the Revolution with a number of developers, it turns out that the Revolution might have a lot less power under the hood than was at first anticipated.With indications that the system might ship with less than 128 megabytes of RAM and a processor that's only double the speed of the GameCube, the Revolution looks like it might be the slowest console on the market by an order of magnitude. This supports the idea that Nintendo's new strategy in the next-gen market is not to compete head on with Microsoft and Sony, but instead to side-step the competition and venture off into their own little market.
"We cannot stress this enough: Revolution is not being positioned as a competitor to either Xbox 360 or PlayStation 3. Nintendo has instead chosen to design a console that will be very affordable for consumers."
IGN.com
Nintendo looks to be introducing a system that compares to Sony and Microsoft's consoles about as well as a Game and Watch system compares to the original Game Boy. People just didn't see them on the same level.