In a weird way, I think Nintendo's approach is basically "Zero to One" to differentiate from competitors, but doing it with cheaper hardware to reduce costs.
I'm not a gamer, but from a business perspective I'm intrigued with their approach.
Hmm I'm not sure if Zero to One fits into what Nintendo does - maybe the Wii was (arguably the N64).
Nintendo main differentiation revolves around their IP, which they manage to refresh with every new console release by making some console feature into a game mechanic (and the gameplay revolves around it).
You can see good examples of it in their hardware accessories for games, where they don't feel like gimmicks, yet on other consoles some accessories do feel like it.
I'm not a gamer, but from a business perspective I'm intrigued with their approach.