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I believe Nintendo lost a good percentage of their core audience to, x360/ps3. They started playing casual games then wanted more out of their gaming experience. Nintendo couldn't provide that because the lack of third party support. There is also the perception that the Wii is a "kids" gaming system meaning safe to let your child play while you're not in the room. Wii sports was cool when it first came out due to the motion control but got old and was outdone by MS with the Kinect. Nintendo has to do a better job of marketing the"Wii U" and initially believed that the unit was going to sell itself based on how the Wii did previously. They haven't realized the demographic has grown up and has migrated to systems that are more powerful and will allow them to play mainstream games. This is not to say that Mario isn't mainstream, but they have a core group regardless of age that will buy a game no matter the system. Nintendo should listen to the consumer and implement features that players care about and want. Voice chat and a trophy system would be tremendous and would make a big difference on how they are perceived by the gaming community. Nintendo also needs to repair the relationship that they have with western third party developers to bring more games and hopefully an exclusive to the Wii U. To give an example, Xbox has "Halo" and "Gears" , Sony "Uncharted" "Killzone" and "Grand Tourismo" and a lot more options for gamer's. Conversely Nintendo has "Mario" in every iteration,"Zelda" and "Metroid." There's nothing wrong with these games but to be honest and not to offend anyone aren't coveted liked the games mentioned above with the exception of those who are loyal to those games which are only on the Wii and Wii u in the future. Can Nintendo remain relevant and only rely on first party games? No they have to look outside of the box and re-examine their business model if they want to be competitive.