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The Wii was the right decision at the time.

They should have made a Wii HD in late 2009/early 2010 though. Kinda like the bump from Game Boy to Game Boy Color. Beefed up chipset, ability to run newer games like Donkey Kong Country Returns and Just Dance in 720p, better OS, more emphasis on digital download and indie games. 

This would've given the Wii the juice to finish stronger in the gen and perhaps topple the 120 million sold barrier at $99.99.  

And in fall 2012 should've released a full on next-gen Nintendo system (New NES) without the Wii branding (leave the Wii HD brand for budget gamers/party casuals) to take advantage of Sony/MS letting the generation run on for too long. Nintendo made a fortune off the Wii, unlike Sony/MS there was no reason for them to prolong the generation, as they'd made a return on their investment, many, many, many times over.