Maybe, but it becomes a chicken and egg situation.  If you look at the Gamecube vs PS2 or the Wii U it's obvious that sales were the main factor.  But with the Wii vs PS3, it's not that clear.  Wii sales obviously slowed down quicker, but it's a chicken and egg kind of situation.  What were Nintendo's major releases past 2010?  Skyward Sword was the only legitimate system seller.  Aside from that, you had Kirby Return to Dreamland (and I love Kirby but it's not a system seller), and Xenoblade which was not even supposed to be released in the west.  2012's biggest release was Mario Party 9 followed by Rythm heaven. 

If Nintendo kept releasing major games, and kept up advertising, I'd imagine they could have kept Wii sales at above 10 million for 2012.  But, there are reasons they might prefer to simply release  new console.  I could go into it, but basically they just have a different business model.

The problem is that you are saying it has to sell well in one market because Sony does well in that market. Again, if you look at Sony's Japan numbers, they are awful, so they need to do well in Europe if the system is to sell well. Nintendo doesn't have this because it dominates Japan and does well in the US. Again, Nintendo isn't doing bad in Europe and I think this is the misconception people are making. Europe's importance is being overemphasized because Sony does really well there. Nintendo will easily have a 15-25 million gain over Sony from Japan alone. If you look at it holistically, then you'd see that Nintendo progress in other regions more than makes up for a perceived lacking in Europe. 

Well X1 and X360 had MS dropping support on the last years and even like that it took longer than Nintendo counterpart to drop, but sure that also have something to do with the transgen and 3rd party titles that Nintendo don't get.

And yes, I don't think he have enough knowledge to determine with certainty if is Nintendo that drops support and sales decrease or if Nintendo drops support because sales have dropped (I'm more inclined to the second because that is how the other companies have done to start new gen. When the SW sales start declining they announce a new gen that shall start in the next 6-12 months).

But the most relevant point is that Nintendo sales of consoles haven't carried to a new gen and even when they were leading it dropped fast after peaking.

The Wii's sales decline was pretty much in line with other consoles, until they stopped pushing software.  

I actually don't think sales of future consoles are all that relevant.  The PS2 and DS were massively successful and enjoyed lengthy support, but that didn't stop the PS3 and 3DS from having bad launches and less successful lifespans.  The Wii U was so conceptually flawed that it really is hard to make any judgments based on that.  It was going to fail.  Success of a previous console is not a strong predictor of a new console's success.  You think it would be, but it doesn't tend to turn out that way.

Also, bear in mind that keeping a console's lifespan long isn't necessarily Nintendo's priority.  The GBA was actually doing really well, but they cut its lifespan short to launch the DS.  Keeping a console going for a long time is not necessarily a good thing.  It is good for Microsoft and Sony who rely on third party support and typically incur big losses at launch, but Nintendo's business model is different.

It's been 8 months (6 months on the charts) since the launch. The supply constraint excuse can only last so long. And that's why I doubled the current Japan gap from 500k to 1m.

Middle class - 430 million.
Upper Middle - 185 million.
High Income - 228 million.

Now look at that change over the past decade and where it is projected to be in just 3 years.  If you don't this means anything, consider that the US purchased 17.5 million cars last year.  The Chinese purchased 24 million.

So, you just showed that the pricing structure of their economy is different and that a 1:1 dollar value ratio is invalid for comparison as it leans heavily in China's favor.

And no, car's are not a necessity in China.  This isn't suburban Phoenix or Houston we're talking about.  It's China, where mass transit is a way of life.

Truth be told, we don't even know if it will actually release there.  That said, we cannot assume a US, Euro or Japanese price equivalent for anything in China but they are more often than not lower than their exchange rate prices would suggest they would be.