The problem, Nintendo executives say, is that they have yet to find the kind of games - and possibly services - that would justify the network's startup costs.

Nintendo executives doubt it.

Even more important, Nintendo executives emphasize that the design of a game - and not necessarily technological wizadry - is the crucial factor that sells video games.

The Game Boy, Nintendo executives say, is intended to broaden the market for video games beyond teen-agers.

Nintendo executives said they thought the market for 16-bit systems would continue to evolve with new software.

Nintendo executives, as well as those of many software development companies still under contract, say that Nintendo's business strategy is not monopolistic, simply shrewd and effective.

Nintendo executives were in no rush to design a new system, but they reconsidered when they began to see their dominance in the market slipping.

Nintendo executives said they were committed to the idea of positioning the new system for an older market.

Nintendo executives said that 100 companies were developing games for the new device and that Nintendo was planning to release 20 games of its own development.

Fitness and gaming experts, along with Nintendo executives, say Wii should not be mistaken for a simulation.