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Squilliam said:

No he doesn't. He was talking about their product development strategy, I.E. Pachter thinks they are probably doing too much looking for the killer inovations when he thinks they ought to be like Apple and create solid and polished products which iterate on pre-existing concepts or draw concepts together from multiple different places.

And here he's wrong.

Nintendo is in gaming, entertainment business, or toy business, if you will. So I perfectly understand why they eager to create a toy with mass appeal (aka killer innovation, or usually referred by community as gimmick) as if they're making traditional toys, each new one is entirely new concept, as if there're no standardization that obviously comes with any industry evolving, and modern age of digitalized video gaming is no exception. They gladly license third party accessories as well. Doing so makes perfect sense from business perspective, since this way they're bumping up their revenues and profits selling a shitload of self-manufactured accessories and getting royalties from sold third party accessories. I believe this is what was behind often misunderstood Miyamoto quote when he said that "gaming will never be digital", he didn't mean digital distribution, he was talking about toys.