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If they hade named it the Wii HD and launched it two years earlier it would have sold much better, especially at around $300 without the gamepad.

Sure it would have eaten away some of the Wii's sales but those hade already dropped a lot back then, and it would have created a much bigger install base for new Mario Kart, Zelda etc. games.

Then maybe launch the tablet controller in 2012, Wii Fit showed that add on hardware can sell really well.