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It's an interesting and probably necessary step to take at this point. The Wii was a Purple ocean product that had the red Nintendo faithful on board and the casual blue ocean. The WiiU has been unsuccessful at becoming a purple ocean ocean product because it only managed to get the reds on board, so Iwata wants a platform specifically dedicated to the blue ocean. I don't know, it might just work. Nintendo will be free of having to put expensive components for gaming into whatever platform they are going to make and they have a lot more room for experimentation. A WiiFit board that's completely standalone with a tiny screen so you don't even have to hook it up to a TV?