I don't fully agree:
The gamers you see bitching online (like me) are only a portion of gamers. When you go in to a Wal Mart or even a Gamestop, talk to some of the people there, many do not even know about the "Gaming Community"
Wind Waker and Sunshine were still big sellers, with long legs.
Nintendo was never going bankrupt.
Otherwise you are right. Hardcore gaming became too competitive to compete at maximum efficiency, so Nintendo went for a new market.
I would cite regulation, but I know you will simply ignore it.







