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@ millenium

The small handful of what she described as core games in nowhere near satiable for even a casual gamer as the attach rate for wii is more than the number of games she could even list.

Gaming was never for everyone in the first place. It was a fad when it came out, and then that interest died out, leaving only the people that actually really enjoyed video games. The wii sells a lot because it is easy to understand and has a good value, and this accessibility is what sells.

However, the wii could be doing a lot more to appeal to HD owners as well. But they are not doing it because, hey.. why would they want to cut into their profits? Releasing more games would just mean that older games would be bought with less frequency.
Ex: Mario super sluggers- one iteration that sells for the lifetime. One development cost. Sports games update rosters and mechanics every season, having to spend money to make new games which then sell less because last year's iteration is now useless to fans.
This is the nintendo strategy.