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His point was similar to what could have been said about the N64 ...

Many third party publishers refused to publish any "Mature" game that was going to target the N64 because sales of "Mature" games were too low; at the same time, most of the "Mature" games that were released for the N64 were garbage so people didn't buy them.

The Wii is in a better position because game like Red Steel, Resident Evil 4 and Resident Evil: The Umbrella Chronicles have sold well and hardware sales justify further attempts to promote "Mature" games. If there are a couple of break out hits, and heavier support from third party publishers, the concerns of most third party publishers will disapear.