you gotta hand it to SEGA, they tried and no one can deny that, so for them to say this or at least have this in their minds is telling...
/my 2 cents
So much for install base and widening the the demographic, the reality is that the install base is essentially useless if this demographic don't buy software and this goes hand in hand with the 'wide' demographic the wii install base is suppose to have, but it turns out it's not as wide as people thought, and is in fact more narrow than the tradition install base found on the PS3/360. Now while it's true that Nintendo have taped into the casual demographic and have actually expanded the market, this expanded segment of the market however have a lower amount of genre they like and want, which means 1 certain genre will sell gangbusters but the rest simply wont, unfortunately it seems that it's Nintendo games which sell gangbusters and every other developers misses out, except for the rareraties that manage to break the mould, but they are the exception to the rule.
It's sad though, because there are so many good 3rd party games that wii core owners are missing out on if they only own the wii, Nintendo should have really tried harder to get 3rd party games on there machine even if they fail in regards to sales they would have gained mind share amoung the core, but it seems Nintendo simply cares about it's bottom line, which is fine because they are a business, but at the same time if they get an image of simply being corporate and not caring then it'll bite them in the ass, it's a catch 22 though. Yes I know they still deliver with 1st party games, but I'm referring to their 3rd party efforts, which is to say that it feels like it's non existant at the moment.
Unfortunately if Sega 100% pulls out of making mature games on the wii, then it'll just fuel the idea that games don't sell on wii, and other devs will use Sega as an example, and the situation will simply get worse.
I have to say, this is the only generation I remember that the console with the highest install base, with amazing sales, has been missing out on nearly every high production 3rd party Game to have been developed and released....it's a unique situation.
/my 2 cents