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Soundwave said:

Hindsight being what it is, I think trying to make an expensive "successor" to the Wii was a mistake all along.

What they should have done is made a HD version of the existing Wii with a better OS, better eShop, more casual apps, and continued to support it with casual only games. Price that at $150.

Let it have Wii Sports 3/4, turning Wii Fit into its own updating channel, etc. Focus it as a fitness + casual device with wacky off-beat casual titles that maybe 2-3 small teams could be set aside to work on. Release this around 2009 or 2010.

Their traditional game division should've gone to work on a proper next-gen console for a fall 2012 launch. Instead of the Wii U, this would be a more traditional device with horsepower similar to the XB1/PS4 but with a one year headstart. No tablet controller, aimed at core players, more investment on launch exclusive titles suitable for the audience they were targeting (no excuse, Nintendo made a fortune on the Wii/DS era, they had more than enough $$$ to bankroll a lot of next-gen titles).

Wii would just become a side division aimed at casuals fully (whatever market for that was left), the other Nintendo console would become their actual console for the next-gen Zelda, Metroid, Mario 3D, Smash, third party, etc. titles. 

So you think Michael Pacther was right? :p

That system would have lived a shelf life of about 3 years though and died in 2013,  presuming it launched in 2010. I don't think anything would have maintained the non gamer market and without mario etc, there is no solid base for Nintendo do sell to. Nintendo could have made quite some profit of it regardless and then devolved it into a TV box, but probably not at $150 if it was to be a proficient HD box in 2010.