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Some of those points are good but it's also not that simple. Part of the success of the Wii was that it was something new and different. That degree of success would never have been replicated by a "Wii 2". I'm not saying it wouldn't have sold better than the Wii U, just that it would never have come close to equaling sales on the Wii.

Nintendo realized that, I think, and decided to go for another home-run rather than swinging for a single or a double. Of course, when you go for a home-run, the odds of striking out also go up.

First of all, Nintendo needs to throw away that "we don't follow what others are doing" philosophy. That only hurts your customers. When someone else comes up with something awesome, you integrate it into your own work as quickly as possible. Doing so in no way stops you from working on your own innovations, it just keeps you from falling behind. Their online services are at least a generation behind Sony and Microsoft and there is really no excuse for that.

It will be very interesting to see where they go with their next console, especially if they go back to a focus on motion controls. I think they could do well by having hardware that is only slightly behind Playstation and Xbox in power, has improved motion controls with a lot of content designed around it, has solid online functionality, and a more diverse selection of software.