How Nintendo Could Win It All
You couldnt be more wrong.
1. DVD player -
Everyone has one. Noone cares if their videogame system can play dvds or not.
2. Push the online gaming. -
Less then 10% of videogame players play games online, and even then, do you really want to deal with the immature, smack-talking, swearing, "give me my chocolate milk, bitch!" crowd? Nintendo is focusing on people having fun, together in the house, as per the previews. It will probably have some online play, but the online component will likely be used more for downloading more games then actual online gaming.
3. Advertise, advertise, advertise. -
Nintendo's biggest push in this is a new mode of gameplay, something VERY difficult to advertise for. They walk a fine line between "That looks cool" and "That looks dumb." Their best bet is to actually get people playing it in stores and friends' homes. That'll be the real trick. Of course, commercials should exist, but their focus should be on getting the system in peoples' hands.