Some thoughts after reading the articles and the postings ...
1. What do we is Sean Malstrom's credentials? We know little about him, other than his writings. Was he really sage by predicting the Wii's success ... or did he just go against the grain and get lucky? We have -- myself included -- treated his work as if he were a prophet. But what do we really know about him. And if he were that good/well-respected, would he not be running a company or at least be an analyst rather than a WordPress blogger? In other words, everyone is entitled to their own opinion, but why is his so special
2. Only on the Wii could games that sell 3M or 6M (Wii Music and SMG2) be thought of as failures. Now he makes a point that the 2D Marios sell better than the 3D ones. But if you released more, would it not decrease their special quality/uniqueness/value?
3. It is hard to be "arcade" games when they have all but ceased to exist (2D fighters and ski-ball not withstanding).
4. How many M-rated games has Nintendo released? It is less than a handful.
5. Nintendo has lost money -- but so have a lot of Japanese companies this year. The earthquake event and the world economy (including the yen's value) have meant red ink for a lot of firms. Sony, Panasonic, Honda, Toyota. Google up a prominent Japanese company and chances are they have lost money -- a lot of money -- this year.
6. I close with this because I know my remarks will be ignored. This is because everyone already has their mind made up. Malstrom thinks he knows all -- and knows what Nintendo should be doing. Those who defend him see things his way. Those who refute him are equally made up in their minds.
Personally, there have been some missteps by Nintendo. And there will be some in the future. But there are also will be successes. I play games for fun -- and Nintendo is fun, just as games on Sony and Microsoft platforms can be fun.
Remember, many people predict Nintendo's doom because of their own personal tastes/desires, not because of reality. And many people predict their success for the same reason.
Mike from Morgantown