@extra life mushroom
Nintendo has never had economical problems (no major ones anyways). The reason for their choices in things such as the mini-discs isn't to save their own money, but to save ours! As proven by the Wii vs. PS3, price matters. They could easily have produced similar graphics to the xbox360 or PS3, but they chose to have it cheaper instead, also keeping programming simple, to appeal to 3rd parties (which they had little support from last gen).