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Nintendo thought the Wii strategy... failed?

Consumers of Wii Sports were perfectly willing to carry on buying similar games. Nintendo just didn't make any. They made WSR (2009), but their time and effort was clearly put into other things. 2006 and 2009 were the only years with a big first party "casual" game push, the rest was all core games or WTFness like Wii Music.

In any case the 3DS strategy is a terrible thing to want to emulate. Release no games for it for a year, then cut the price so you lose money per unit.