I think it's absolutely hilarious that this little handheld with graphics equivalent to a what.. 64? maybe some games can pull off gamecube power maybe? and it's the best selling thing..... all of the graphics whores who constantly talk about "next generation" are buying all of their super expensive games, but everyone else (including a lot of non gamers) are buying this thing.
I personally would love to just give Nintendo a high five just because they've really pulled out how to advertise to those who never played games before. They make quick, fun, simple games... and then there are a few more in depth ones for the more hardcore gamers who happen to have lives that don't have more than an hour to play something during the day sometimes.
The Nintendo Wii is a huge jump.. and I'm afraid it might be a little bit too big of an item for the average non gamer to take on and actually play on a regular basis, but I hear it's been kicking ass so who knows. A ton of oldschool zelda fans bought it just for that.
I personally would always say "NINTENDO IS GONNA BEAT EVERYONE!" just for the hell of it, but I didn't really think it'd be true.. and still honestly I think the bigger companies with more money will eventually take them out, but man right now they're doing a great fuckin job for the resources they have IMO.