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Factor 5 has mentioned that they wanted to make a Wii game but couldn't because Nintendo wasn't willing/able to reveal specs on the Wii in a timely manner for game development to begin. Factor 5 felt 'forced' to goto PS3 and make Lair instead. And what a shame Wii didn't get Lair. Maybe it didn't hurt...

But point is, since Nintendo needed to keep details specifically the Wiimote secret until E3 and major games take 2-3 years to develop it certainly affected the quality of games 3rd parties sent to the system within the first 2 years.

However many of the other factors mentioned in this thread certainly played a major role too.