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padib said:

The easiest answer to this essay is the handheld line.

"Hardcore gamers" (whatever that even means) and their infinite demands for visual glory never stopped the handheld line from succeeding. The answer is that good gameplay trumps cutting edge. And the Wii was very well served by Nintendo (1st party) in that department. Your essay mentions that Nintendo sinned HW-wise and so there lacked 3rd party games due to low horse-power. But your essay says it also itself, that MG1&2 are legendary games, still great to play today, Skyward Sword still today has the best motion controls ever (it's a pity that legacy ended), and so the sin was on 3rd parties to not capitalize on the Nintendo's success. But who can blame them? They are human after all, and make mistakes.

You know, nobody's perfect.

The sin wasn't on third parties, they will go wherever the money is. The sin is on Nintendo. They launched an over priced, out dated console into the market without a first party killer app so no one bought the system. 3rd parties won't jump into a system with a low installed base.