Soundwave said:
Even the "budget console" thing is problematic at least this gen because the PS3/360 basically will serve that market for the next 3-4 years with tons of cheap games available and eventual sub $200 price points.
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Let me stress again that I'm not talking about the Wii U. It's too expensive. However, if it were at the $199 price point right now, I think it could do some damage, especially over the holiday season.
Nintendo is also going to need to catch the attention of more kids. That probably means bringing Pokemon or a kid-centric new IP to their home consoles. I'd bet my dog that adults are the ones getting excited over Mario or Zelda, much more so than kids. They need a new software homerun. Perhaps it's time to talk to Level-5 about Youkai Watch.
That, or they can coerce parents into buying a budget system with some Bible Chronicles video-games.