Ok, to clear up what you're thinking in the handheld market, Nintendo isn't competing with themselves. Truth be told the GameBoyMicro is just a smaller GBA....nothing new has been added to that because really its ancient technology now. But now its even cheaper to manufacture and since its new they can sell it at a higher price and make even more profit. Once the SP came out the GBA's were essentially out of production, and now the same thing will undoubtedly happen once GB Micro launches. Now how Nintendo is making more profit than Sony and Microsoft (game divisions only) is because they are the only console maker to sell their machines at a profit. So where Sony and Microsoft sell their consoles and have been even at their launches for a loss Nintendo has been making money. Another thing is most of the games that are sold on GC are either made or published by Nintendo themselves....they make the hits on GC period. Thats also part of their problem because 3rd party's dont want to compete with them. Ill be the first to say Nintendo is very conservative, and for good reason. Unlike Sony and especially Microsoft they cannot afford to be unsuccessful with the business decisions. Sony had their entertainment division and well Microsoft just seemingly will spend any amount of money to stay in the console market they have reported a loss on hundreds of millions of dollars in EVERY PERIOD. If big N fucks up they dont have another business to fall back on.