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"NOT enough Japan oriented games."

Exactly. I don't buy the size argument and the price in Japan is lower than in Europe but without japanese games this is totally academic. As you said this will change though.

"Not everyone is won over by graphics. When was the last time the most graphically superior console won a generation of gaming."

When was the last time a console with graphics of the last generation won? Never. The best graphics may not be important but good graphics have always been important. So until now the Wii is an exception to the rule. Let's see if that stays like this.