What people fail to realize is that there are hundreds of millions of untapped customers. The current video game audience only represents a small fraction of the overall population. Nintendo hasn't even begun expanding the audience yet.
It's like the portable music player market before Apple came along. Sony had a pretty decent brand with the Walkman. When people thought of portable music players, Walkman was the name. But at some point, Sony stopped selling to new customers. The market stagnated because noone really attempted to lure new customers.
Then Apple came along with the iPod. Was it the most technically capable player? No. Did they ever sell it at a loss? No.
What did they do? They made it as easy as possible for the technically illiterate to use it.
And just like Nintendo, you had endless tech nerds giving us every reason to believe iPod sales would fall. Yet, the iPod success still continues long after these 'experts' claimed that it would die.
Why? Because they sold to the world of people noone else would. The same thing Nintendo is doing.
That world is a lot bigger than the current video game community, much, much bigger.
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