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S.T.A.G.E. said:

No. The Eyetoy and party games did not sell as well as you think. They were profitable and thus Sony kept making more iterations. If Singstar was on the Wii, it would've sold far more than it did on the PS2. Sony makes a ton of games in various different places but one thing i've always hated about them is that they dont try to overly influence gamers to buy them. This is why Microsoft purchased natal which was a more powerful eyetoy rode the casual wave the Nintendo created. Sony fails to boast about every secondary product they have outside of the main console. The Eyetoy was profitable and thus they made another iteration of it. They never oversold their casual motion products. Microsoft showed them what to do with their own idea.

They were multi-million sellers nonetheless and especially stuff like Guitar Hero was very successful on PS2. I don't claim that PS2 had a casual audience nearly as big as the Wii. But it definitely was substantial, and it did myteriously disappear from PS once a certain Nintendo console launched.