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IamAwsome said:

One last thing is that the 1st Red Steel ws crappy. It's possible that gamers bought that with their Wiis at launch and realized how crappy it was and it scared them away from the Wii altogether.

This is what I've been thinking for a while now. I imagine people bought the 1st Red Steel and where like "Wow...this is what FPS games on the Wii are going to be like? F*** that!!"