Sega talks about their actual state. Core games at risk

[NJ5]

Rpruett said:
One other thing that hasn't been mentioned is the fact that Nintendo really is 'ruining' it to some extent for the other consoles. Had Nintendo released an HD compatible console with somewhat comparable specs with Xbox 360/PS3. Then all sales on this generation would have went towards HD games.

Games like GTA IV, CoD 4, RE5, could have all been ported over to the Wii or ported to the 360/PS3 with ease. Which allows developers to recoup their money on the whole user base.

The way things are now, HD owners / Wii owners are divided almost 50/50. Once Nintendo moves into Wii HD, you will see the whole industry drop in cost because that user base just expanded by about 50 million + people.

All that would to would be at best to postpone the crash we're now seeing. When expenses increase faster than revenue the bubble must pop at some point.

You're also forgetting that a HD Wii would be quite expensive and probably sell much less, since Nintendo doesn't like to sell hardware at a loss. Not to mention that Nintendo themselves could go under in such a scenario which would make the industry crash even worse.