Nintendo saw that there was a market being completely overlooked and they acted on it.
Genyo Takeda said this "“If [Nintendo] had followed existing roadmaps we would have aimed to make [the Wii] faster and flashier. We’d have tried to improve the speed at which it displays stunning graphics. But we could not help but ask, ‘How big an impact would that really have on our customers?"
He compared it to the auto industry. Most people don't want a race-car. There is also a market for fuel-efficient, family-friendly cars.
As for third parties, they are doing well, just not where you'd think. Core gamers think of it all as shovel ware, but this is software that is appealing to a different audience. Nevertheless, Rayman Raving Rabbids, EA Sports Active, Carnival Games, Game Party, Deca Sports, and Big Beach Sports are just some of the 3rd party games that have sold 1 million or more.
Unfortunately Mad-world and The Conduit may never make that list.
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