Sony successful sold the idea that GC was a kiddie console (Nintendo didn't help matters with their lunchbox console and colours choices) and the PS brand was a teen/adult system which is inheritantly cooler.
Wii's success is not due to the traditional Nintendo IPs. They have probably sold some 10-20m systems thus far (on par with GC) based on those IPs. Wii sells because it appeals to non-traditional players (girls, women, mature consumers). They have some interest in some traditional Nintendo IPs (Mario Kart/Party and NSMBW should be HUGE) but little in the Zelda's, Brawl, or even SMG. Which is why Nintendo isn't rushing to push out more 2nd string IPs like Star Fox, F-Zero, Kirby, etc. They won't sell systems.
I seen people try to push the 'kiddie' label on Wii too but it's a hard sell when your Mom is using it. Which is why it's branded 'Casual' and been made uncool in gamer circles but Nintendo doesn't care about that because it's expanded audience doesn't pay any attention to what those 'game geeks' are saying.
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