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When you base your entire strategy around casual, you have to be able to stay ahead of the casual market. The casual market releases hundreds of games a month on mobile and platforms/pc.
Then you release a system that is basically a phone touchscreen without it actually being a phone.
Innovation is the key here. It's not about nintendogs or mario or anything like that.
When you're coming off two revolutionary consoles with revolutionary games, you need to be able to keep pace.
I'd say the sales should be pretty expected.