ViolentPhlegm said: I'm not miscontruing Iwata's words. He told investors in February not to consider the Wii's Japanese sales during Holiday 2008 as an indication of something that was going to happen in the rest of the world. He said it was a Japan-specific problem because the Japanese public get tired of new technology quickly. He blamed that specific social trait.
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Nintendo's corporate philosophy inherently ties software and hardware. The R&D teams literally work in the same office... this is the opposite of how Sony or Microsoft operate, and even how Sega used to operate (and still does for R&D of their arcade tech) Iwata's also said (repeatedly) that Wii's decline was due to software failings, so I'm not sure how you can dismiss that so out of hand.