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I believe that the real problem is demand destruction. Third parties had a pivotal hand in shaping the Wii's market from the very beginning. Unfortunately, by flinging barrages of shovelware at the Wii while putting their best efforts on the competing systems, the Wii's market has been shaped in such a way that excludes third parties. It goes like this:

Those who stay Wii-only owners, see that third party games on the Wii are almost always crap, and learn to avoid them.
Those who own multiple consoles, see that third party games on the Wii are almost always crap, and end up getting their games on the PS3 or 360 instead, which represent their best efforts.

Basically, third parties screwed the pooch on this generation, big time. They blocked themselves off from half of the entire console market, a new untapped market, in favour of the existing, but increasingly cutthroat and parochial half. By now, even if third parties were to change gears and produce their best games on the Wii, their sales would be low, because they managed to destroy demand for their games on the Wii so effectively over the past three years. Meanwhile, Nintendo continues to hoover up the cash, completely heedless to the existence of said market, or lack thereof, on their own system.



Super World Cup Fighter II: Championship 2010 Edition