Procrastinato on 26 January 2010
I think Pachter is looking at it from a 3rd party profit-per-investment standpoint, whereas you are looking at it more from an overall perspective... which benefits Nintendo, due to the joys of licensing fees, but not the 3rd parties.
Apple, and its 3rd party iPhone publishers, are in much the same situation. Apple is making out like bandits with the iStore. The 3rd parties are not.
Curiously, the iPhone's touch interface also gives it a unique appeal to the casual market. Very similar appeal to the Wii, I'd say, as well.
