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Part of it is because Nintendo's own games have historically dominated sales on its own platforms, and that's been true for Wii as well.

He's mixing cause and outcome. The cause is actually that because 3rd parties didn't release games on Nintendo platforms, Nintendo dominated its platforms' sales.
Which is completely logical.

Part of it is because the creatives and the suits at third-party publishers don't know how to address the expanded audience on the Wii

And part of it is because they don't address at all the audience they know about.
What you do is address what you know about, and if the new audience doesn't bite, then you try things for them, while sustaining yourself with stuff for the known audience. This means genuine effort is made of course.

But this is not at all what they are doing, so they have no excuse.
All this revenue talk is BS. What good does it make if you post losses despite higher revenues?