I think Pachter may be right about this one. I think he stated the average sale price for 3rd party games were quite poor which explains why Microsofts Alan Greenburg has a big circle jerk with the NPD document as porn every month with the gaming media about overall $ value of third party purchases.
The Wii would have been better off had the performance been better in terms of third party support but worse for 1st party support. Things would not have been better overall with more powerful hardware because the only reason why Nintendo was able to hit the ground running was the fact the hardware was second nature to them and they could repurpose Gamecube engines/concepts and games in development.