why companies arent considering nintendo direct competition?

[LG[Infinite]]

Damage reduction. When a company is in a losing situation, the absolute last thing it wants to admit to the public is that it's getting slaughtered. Still, it's not surprising that Wii hasn't gotten a lot of sequels - most third parties thought it would flop and started production for the PS3 and XBox360 a while back. As much as we all want them to, they couldn't just switch instantly to Wii development once it started doing well.