Don't bring a knife to a gun fight
BeyondVC: "...what Nintendo did was slice and dice the multi-billion dollar gaming market so that it could be first place in a submarket (which is quite huge) that Nintendo has defined, that plays to its strengths, and that it can win. This is a big deal and quite smart. Even though Nintendo is a large company fighting even larger ones, this is a strategy that any startup can use - change the stakes and be the best in your new category. This does not mean to slice ad infinitum until you get a market so small that it is irrelevant, but the point is that going into "hand-to-hand" combat with those with much greater resources can be quite hazardous to your health."