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I think the problem lies with 3rd party involvement. They pushed hard through 2008/2009 to get big 3rd party IPs on Wii, however, 3rd parties were mostly focused on the graphical limitations and perceived lack of a core audience that would buy a quality title on Wii. Thus, Wii had a low software turnout for late 2008 and 2009, the time Nintendo probably told everyone on the inside when they would deliberately not put out their own big titles for the sake of helping 3rd parties.

Now, with NSMB, Galaxy2, Metroid:M, and probably some other big title late next year like Pikmin3, Wii will do fine and steady and stay above PS360, but, it could have kept moment had 3rd parties been more willing to put exclusive big IPs on Wii, like they did with PS2 and every other market dominating hardware.

Now, its a more fluid market with the illusion that core titles from 3rd parties will only sell on PS360. So Wii is left with great niche titles, 1st party gems (as always), and the really rare quality 3rd party big IP like Monster Hunter. Where this is better for the overall consumer as they have less exclusivity, its bad on Nintendo's overall plan and Wii-only owners like myself.

Maybe with a WiiHD/2 etc, and a much smaller gap in raw power, Nintendo can create what they hoped for here.

THIS may be the only potential reason that a sequel is right around the corner, since overall sales trends and historical analysis would definitely state a Wii sequel won't happen until at least 2011 and probably 2012.