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Squilliam said:
Personally I never felt that Nintendo truly believed in the Wiimote/Revolution concept. When they launched the console they intended to sell it for $199 and they included nothing but old technology which had been repurposed. Had they actually believed the Wii was going to sell a significant quantity they would have IMO included more up to date hardware such as a more modern IBM CPU and Radeon graphics chip. They invested relatively nothing into the console compared to pretty much any other console ever released and yet this article claims that they believed in the technology?

I beleive there was quote from Iwata supporting this, smth like he beleived in Wii, but didn't exepct it to sell that fast and in such volumes. But it'd better to check with Nintendo hardware forecast at the time if any.

I do think as well that on the one hand they were trying to play safe by lowering hardware devlopments costs, increasing profit margin from every unit sold and even maybe reducing software developments costs - if smth will go wrong business will survive at least, but on other hand it's still was desperate move, that did wonders. People sure did beleive Nintendo were desperate when Wiimote was first shown to the public, I clearly remember this :D