It is mostly credited to Gunpei Yokoi's philosophy:
"Yokoi articulated his philosophy of "Lateral Thinking of Withered Technology". [...] "Withered technology" in this context refers to a mature technology which is cheap and well understood. "Lateral thinking" refers to finding radical new ways of using such technology. Yokoi held that toys and games do not necessarily require cutting edge technology; novel and fun gameplay are more important. In the interview he suggested that expensive cutting edge technology can get in the way of developing a new product"
Nintendo consoles have always been a bit behind technologically; but I think this became really accentuated with the Wii, which was by design not that far ahead of the Game Cube- when the rest of the industry went full steam ahead fighting on specs.
"Yokoi articulated his philosophy of "Lateral Thinking of Withered Technology". [...] "Withered technology" in this context refers to a mature technology which is cheap and well understood. "Lateral thinking" refers to finding radical new ways of using such technology. Yokoi held that toys and games do not necessarily require cutting edge technology; novel and fun gameplay are more important. In the interview he suggested that expensive cutting edge technology can get in the way of developing a new product"
https://en.wikipedia.org/wiki/Gunpei_Yokoi#Lateral_Thinking_...
Nintendo consoles have always been a bit behind technologically; but I think this became really accentuated with the Wii, which was by design not that far ahead of the Game Cube- when the rest of the industry went full steam ahead fighting on specs.