They also take into consideration the limitations of the hardware from the very beginning, and not just the engineers, but the designers as well.
"...Although I am not an engineer, I have always included in my designs consideration for the technology that will make those designs a reality. People have paid me a lot of lip service, calling me a genius story teller or a talented animator, and have gone so far as to suggest that I try my hand at movies, since my style of game design is, in their words, quite similar to making movies. But I feel that I am not a movie maker, but rather that my strength lies in my pioneering spirit to make use of technology to create the best, interactive commodities possible, and use that interactivity to give users a game they can enjoy and play comfortably. "
"That's how we make games at Nintendo, though: we get the fundamentals solid first, then do as much with that core concept as our time and ambition will allow" - Shigeru Miyamoto
1. https://www.youtube.com/watch?v=2u6HTG8LuXQ