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Hynad said:
Why would they go to great lengths to make sure that they ruin their reputation/name before switching to a broader market? Why wouldn't they just, you know, enter those other markets right away, if that's what they wish to do? Why ruin a part of their name to make it happen?

Please, explain to me how that makes any sense in your head.

It's not what is actually happening, but there is a valid reason for them to do it, if they wanted out of the gaming industry.

They have to justify their actions to investors. So simply leaving the market when it looks really lucrative is bad because investors will see it as giving up such a lucrative market. So instead, come up with plausible reasons for actions that have the net impact of ruining their reputation in the market, and suddenly it's not so lucrative anymore.

It's pretty much what a number of companies did with the Wii, because they didn't want to work on it - they released low-quality titles under the auspices of "testing the waters", and when people didn't buy the low-quality stuff, they went "see, our products don't sell on Wii". It's how they sold it to their investors.