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padib said:

It's also not like Nintendo hasn't shown an interest in doing the right thing in the past, morally speaking. When they were having trouble making profit for the past 3 years, the first thing they did was downgrade the higher-up paygrades.

That's a Japanese thing and a response to pressure from investors.  Sony has done the same thing.  The Japanese are crazy about someone "taking responsibility".  Means absolutely nothing in terms of morality.

Nintendo is a for-profit corporation.  They don't take losses just because they're good guys.  I have no doubt that they thought the Wii U would be bigger, Bayonetta 2 sales would be better, and that it would lead more consumers to buy a Wii U.  No part of this was charity.  This is the company that tried to screw consumers side-ways with the original price of the 3DS.  They are in this for money.

What they were really after was the perception that the Wii U has a more diverse line-up than, say, the Wii.  They wanted to attract Playstation/Xbox gamers.  However, it was way, way too little and too late.  A couple figure-head games aren't going to change that.  They want into that market, they're going to have to do a LOT more and buy up rights to a few cancelled/postpones projects.

It's also possible that, not being familiar with third-party games, they over-estimated Bayonetta.  I think a fair amout of hype about the original game had a lot to do with the over-the-top sexuality of it.  It was a spectacle.  People bought it to see something crazy.  Now, though, I think the shock value is gone.  We've seen the semi-nudity, we've seen the silly sexualized finishing moves.  Personally, I got tired of that quickly in the first game.  I really don't think it's the draw they expected it to be.