Excellent observation! The only thing I would debate is that they likely saw the Game and Watch as very successful for the time.
Actually, I've noticed this trend with all of Nintendo's systems--introduction with one then refinement with the next.
NES (Primitive 2D graphics) --> SNES (Refined 2D graphics)
N64 (Primitive 3D graphics) --> Gamecube (Refined 3D graphics)
Wii (Arguably primitive motion controls and online) --> Project Cafe (Refined motion control and online heavily rumored)







