To me this pushes Nintendo out of the next generation console 'war', however I don't think this is necessarily a bad thing. As Opty said, both the 360 and the PS3 will be out by the time the
specs of the Revolution are released, the weaker of which released early thus getting first dibs on the market of fanboys looking for their console fix, while the more powerful (in this case, most powerful) gets the later release and hopefully a couple of solid release titles to set it on its way.
So where will the Revolution fit into this? Although it's specs haven't been released, the PS3's been
touted to be 2x as powerful as the 360, 15x more than the Revolution, and 35x more than the PS2. I know it's probably a biased source considering the site but the PS3 has been hailed as the 'most powerful'. So they don't have specs on their side, or time, god only knows when the console itself will make an appearance on the retail market.
But what if it weren't considered a
console itself per sé? What if they sold them cheaper than the other consoles? We already know that it's using different controller technology (similar to the LightGun) and the shape resembles a remote control, and that you'll be able to play all your Nintendo classics right from the NES era, so maybe they'll stop pretending to stay in the next-gen console race and take it in a new direction (or Revolution
) if you will, because unless they pull something huge out of the hat (and it'll have to be pretty gargantuan) I really don't see how they can possibly stand a chance.