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The Wii, in addition to being cheap to built, also was easy and cheap to develop since they started with all the work they'd already done with the GC, and did easy things like ramping up the clock and adding more memory. The control interface certainly took some effort, but as I recall the core of it was acquired with some company Nintendo bought that sold mice/pointers along the same principle (so it was amortized with that purchase). Also, even with the channel interface, there seems to be a lot less software in the Wii vs. the 360 and PS3 (software costs money to develop)