A nice analogy is the video game console world. Back then when Microsoft came out with XBOX360 and had the most advanced and complicated controller, the best graphics, the most horsepower. The race was one of technology and number crunching. Nintendo decided they were tired of playing that game, so dropped out of that race. They released an 'underpowered' console with primitive graphics, but it could do something that the others couldn't : it had motion control and a very intuitive, simple, tactile interface. PS3 tried half-heartedly to get in on the act with the six axis (read Tone Match haha!), but it was too little, too late. Nintendo were out of the cycle and made a killing.
What happened since then though...
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