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For the diminishing audience that was still interested in Wii mini-games they should've jut made a Wii HD ... something cheap ($150 max) that could run basic 720p resolution games with Wii quality visuals or slightly better. Nothing more, nothing less.

Then they should have made a real new console and taken advantage of a year headstart over Sony/MS. They wouldn't have beat Sony but probably they do better MS and get a decent slice of that next-gen pie (45-55 million units).