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I believe you will find that the correct answer is A&B. The video game industry was showing clear signs of a shrinkage. Japan was shrinking and the US stagnet. Games were frustrating and alienating more gamers than were being replaced by new gamers.
Iwata specifically designed both the DS and the Wii to grow the market by making gaming more accesable. Once he did that, in addition to recruiting a new market, the Wii obviously competes for the existing market as well.