Reggie's talking a big game about how the company doesn't run from risk, but runs to it. An obvious counterpoint jumps quickly to mind: Nintendo is a very conservative company. Though the company has taken some risks with DS and Wii hardware, its also meticulous about controlling hardware costs, managing contracts and quality control, and in general ensuring that the margins are there to make a console profitable. Nintendo supporters routinely brag about the comapny's ability to make money, even on the GameCube. Their ability to do this is directly reliant upon keeping investment (in hardware, in marketing) low relative to sales projections. That is the very definition of risk averse. To put it another way, these aren't bet-the-farm risks.

Touchscreen aside, the DS is still a solid gaming handheld supported by a very standard ecosystem of software developers and a solid portfolio of original IP. The Wii strategy takes a small risk on the HCI (human-computer interface), but everything else is rather similar to any other console's strategy, sans insane spending. Sony's taking more risks this generation. Blu-Ray's success is critical to multiple lines of business that keep Sony afloat. It's huge investment in complex technology that will make or break the company in the decade to come. That's risk. Even if the Wii were to end up in third place again (as several analysts we talked to yesterday predicted it would), Nintendo will still survive. If Sony were to fail to capture dominant marketshare this generation, the results would be catastrophic. That's risk, and we just wanted to set the record straight on it.