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"Sony and M$ both applauded Nintendo with an heir of dismissiveness (they've still tried such tactics but it looks sort of ridiculous when the company they're dismissing is is destroying them in sales yr in and yr out)"

Hasn't Microsoft recently at least admitted that Nintendo has this generation, but now they are competing for second (actually they said they would outsell the PS3 but that's besides the point!).

I remember in Sony's recent PR statement, they kind of admitted it that they can't really beat the Wii (well actually I remember that Hirai actually said that he still considers Sony the leadership of the industry basically saying Nintendo is in a different area, and the 360 won't last long), but as I just stated in the bracket he just dismissed the Wii. Maybe from the above paragraph, that's what MS was doing as well.

Anyways, as for on topic, I totally agree. Many people really couldn't see this coming. On a forum I used to go to, one guy said, before the the release of the PS3 and Wii (the 360 was already released because it came out a year earlier), that he expects it to be a battle of the 360 and PS3 as the Wii is just trailing behind. He's reason was that he saw Nintendo just being like Sega just going downhill, and I'm sure this was the general opinion of many people and third parties before this gen began. They also thought that this was just a fad (actually sadly enough some ignorant people still do) and wanted to see if it would blow over, and it seems it hasn't blown over in the least and just keeps doing better.

HVS right now seems to be supporting the Wii 100% (although I recall their reason being they just wanted more hardcore games that weren't just coming from Nintendo on the system they all love). Anyways, almost guaranteed, if The Conduit does sell well, maybe more third parties will start supporting because it has been said that good "hardcore" non-Nintendo titles do poorly on the Wii.

Anyways, to sum up, I pretty much agree with you.