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NintendoPie said:

We can't always count on potential. I doubt many of those people would want to jump ship from their Phones (as gaming devices) to Nintendo just because they dropped the price of some of their FlagShip titles. I just don't see it playing out. 

Let me ask you this, what do you think 2D Mario should be priced at now? (Sorry if you already answered this.)

No problem. I think that 2D Mario should be priced from 15-30$ on entry into market, for all offerings (home and portable). I think that's a competitive price.

As for jumping ship, it isn't required though. It is perfectly reasonable to own an iPhone/tablet/smartphone/PC, and a gaming console. However, I would agree with you if you said that Nintendo's current HW strategy doesn't easily warrant pushing the current cap (150m for a top-selling plat) much higher.

Also if Nintendo didn't count on potential, the Wii as it were would never have existed.

TruckOSaurus said:

So you consider the next CoD a gamble?

If Tony Hawk and Rock Band are any indicator I would say yes. The flip-side to that is EA Sports games, which have maintained a yearly iteration model, and it worked out. I'm not sure if that's more the exception or the rule, I'll let you think about it and tell me what you think.