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They are just in no way irrelevant. They actually are much more game oriented than the US. That is shown by sales of videogames in Japan being many times on par with sales in the US, even with the smaller population.

Good games always sell there. Handhelds sell because they have good games and it is a gaming everywhere solution. They just seem to be more aware and won't buy a console with no games. By this I mean your beloved Wii.