Go Nintendo mentions that, in an interview with Yahoo Japan, Satoru Iwata declared that the Revolution would cost less than the Xbox 360, which currently weighs in at $299 for the crippled Core system. With the PS3 estimated to launch at least at $399 (and at a significant loss at that), and the 360 already there, this would definitely put Nintendo in a good starting position. It’s also very likely they’ll beat the PS3 to market, which would also make an impact.
Of course, none of that will matter if the software isn’t there, and third-party support has been a problem for Nintendo since the N64. Downloadable games from systems past might make that irrelevant though, at least during the launch. It will certainly be interesting to see if the Revolution will perform against its peers in the same way the DS has fared against the PSP.