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justinian said:
From a business perspective the install base in very important, it's the difference between making relative peanuts (Wii U) vs printing money (Wii). 

Not exactly. Most of the profits come from software not hardware. Additionally Nintendo's consoles, even when they sold little, were still selling for a profit. Selling more platforms gives you a market advantage and raises the potential for profit, but it doesn't necessarily mean you'll be more profitable. Just compare the Gamecube with the XBOX and PS2.