Many people keep claiming Nintendo only focuses on the 'casual' market. Yet they have clearly made games marketed towards multiple markets. Their 'Wii' line is not the only games they make. This generation is leaps and bounds above last generation. You know, the GameCube? And they are clearly making games that appeal to 'gamers'. Not just casuals. You know...Mario Galaxy, Twilight Princess, Wario Shake, Metroid Prime 3, Fire Emblem, Mario Kart, etc. In its first 2 years, the Wii has already surpassed the GameCubes best Nintendo based library of games. Punch out and a new Kirby game on the way.
But more than this, they set up the Wii and DS to be heavily Third Party friendly consoles. And, at least on the Wii, they didn't show up. It really bugs me that people keep blaming Nintendo for trying to turn everything 'casual' when its more the third parties who have been focusing more on a 'hardcore' and 'mature' kick the last 8-10 years. And as you just said, that market is the minority.
Nintendo held back in the technological department on the N64 and the GC and it didn't pay off. But there was a reason for it. The same reason they did for the Wii. because they didn't want their systems to cost $600 dollars and they wanted their systems to be primarily about playing games.
It didn't pay off for the N64 or GC, but it certainly has payed off on the Wii.











