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Of course Nintendo would be in a better position.

Now this is under the assumption that the media is the same but it would have made it easier for 3rd parties to share development so that ports would be possible without diverting to many resources to have to downgrade the tech they are using on top of adding motion controls. Sure there would have been an initial lull in game development like the other companies had during the start but truth be told the only games Nintendo really did a lot with in regards to the Wii early on in the first year or so was Super Mario Galaxy. A HD Wii Sports probably wouldn't have been that much more expensive.