This is exactly the point. I truly believe that Nintendo never in their wildest dreams thought that the Wii would be an industry leader. When you look at how they have handled the system from the beginning they made a very cheap console with marginal upgrades in graphical appearance basically dubbed a Gamecube with Motion controls.
I think Nintendo came into this generation with the mindset that they will be able to sell their games to core Nintendo owners regardless of what they put out there. If only for the newest iterations of Mario, Zelda, Metroid. And if they keep the costs of their system down, then it won't hurt them if they don't sell 50 million consoles.
Nintendo took a chance at motion controls because of this philosophy. They have a core fanbase that won't go away anytime soon. Plus they have always had the family friendly, kid friendly vibe about them. They were in a position that the market leader(Sony/PS2) and (Microsoft/Xbox/Direct competitor of the same pie Sony has) were not.
Nintendo was a trading card company for god's sakes. They copied and borrowed all the way to the top. It's almost comical watching Nintendo fanboys spin it like Nintendo invented Video games.
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