The reasoning of the cafe and the 3DS can only be understood either one of two ways, either Nintendo is stupid enough to repeat its past mistakes, or the consoles were created with the understanding that they are abandoing the consumer.  There are no other explanations for why Nintendo after seeing massive success with the Wii and DS, would throw those strategies and ideals away for the 3DS and the Cafe and a strategy of decline.

Its not the first time that Nintendo has mde these mistakes, it was the SNES/N64/GCN era that ws Nintendo's first major decline, and it wasn't Sony o Sea or MS that caused it, bt Nendo and their own foolish decisions, even then, Nintendo continued to make the right decisions in the handheld market, and the strategy of the DS not only led to the highest selling system in history, it also helped to lead to the Wii and a resurgence of the company's home console market, th reson for its sucssesses in th handheld and hom console market was a decision to appeal to the old school and expanded audience, those who were put off by the overly complex and uninteresting fare found on the "modern consoles" found a home on the DS and Wii, the same people who rejected 3D Mario were eager to purchase 2D Mario, people who had no interest in violent gritty fare that required complext controls and hours of gameplay, were happy to buy Wii Sports and Nintendogs, brain age and Wii fit.  But even with the Wii, Nintendo seemed to leave the promise unfilled, they still tried to jam games like Galaxy and Other M to consumers, even though they were rejected over and over.

Cafe and 3DS seem to make clear that Nintendo isn't really interested in catering to the audience that it gained with the Wii and DS, and would prefer to fight in the red ocean while making the games that led to it being the third place console maker, and is even willing to sabotage its handheld market in order to do so.  

Ummm no.

SNES wasn't a failure. It was the first time that Nintendo faced a real competitor and both fight for the same market, because of that the market was splitted in two, also you mention Galaxy as an example of a games "jamed" check the sales it's one of the best selling games of this generation.

Also what Wii/DS consumer are we talking about?, most of the "casual" consumers that bought products like Wii Fit, Sprts, Brain Academy. etc. only bought them for the hype ut never bother to support other options in entretainment for the same system; You can't sustain a bussiness model like that.

I agree with you, but a link to Malstrom's blog would be more effective. You haven't really added to it.

I agree. Nintendo didn't learn anything from the success of the Wii and DS, and are now going out of their way to cater to the demands of developers and hardcore gamers, who don't care about them anyway.

Problem is, you know absolutely nothing about Project Cafe and you have no clue whether or not it's consumer-friendly. You know a ton of rumors, but that means jack squat.

Lol no. Your argument is filled with falacies, since you dont even know the approach that Cafe will have, and you ignore that the 3DS has some really amazing casual-friendly features & software already. Nintendo cant live from the casual market, since thats what they are, C-A-S-U-A-L.

Super Mario Galaxy was rejected?!?

Why did they face a competitor alfred, it wasn;t because of Sega, it was because of Nintendo's own deicisons, Sega had a master system in the 8 bit era, but lost horribly to the NES.

Galaxy sold, but did not move consoles, and did not expand the audinece, and sold  far, far less than 2D Mario

Heck both Galaxy's sold less than NSMB combined

They bought them for the promise of future games, that Nintendo never fulfilled the blame for unsustainibility was Nitnendo's not the market

So why isn't Nintendogs selling

Actually Nintendo could easily live off of he old school and expanded audience, problem is, they aren;t willing to cater to that group