Then Wii Sports is going to be the best selling game of all time for a VERY long time.

yeah because its because they totally had a choice in the matter didn't they lol?

Never said it wouldn't. 

Whether or not they had a choice is irrelevant. The fact is that the game is popular enough to have a sequel.

Anyway, talking about Knack is off-topic, so let's stop here.

Irrelevant. It was, first and foremost, a bundle with every console for Japan. And, second, until it has an actual sequel or plan for one, it is not a franchise. Just an IP, and the whole pissing contest started over IPs that had franchised into multiple games. Knack does not fit said criteria in any way or shape at current.

(And until its actually playable, it may not even be considered a game.)

Of course! Knack is the only reason the PS4's launch in Japan was so successful!

Knack Knack

You keep saying this but it is definately 100% Nintendo... Monololih soft is Nintendo.

Also sony likes to make a new IP then pump out a trilogy in an attempt to set up a franchise, often these don't make a lot of money. They do so to sell PS4s to sell third party games where they make their money. Nintendo has to make profit of its software so they can't really follow the same model.

If you noticed in the post where I bolded Knack, I said I bolded games that were almost assured of a sequel. The fact that it did well in Japan is in fact relevant, since it means that Sony will almost have to make a sequel, if only for Japan.

Nintendo BOUGHT Monolith Soft, and didn't actually fully own the company until 2011. Xenoblade Chronicles was developed and released before Monolith Software was fully owned by Nintendo.

Nintendo bought an 80% stake in Monolith in 07, long before Xenoblade was announced. They didn't "fully" own them, but they had the controlling stake. 

80% share does mean controlling share, yes, but it doesn't make them first-party, not quite. Namco-Bandai, I believe, owned the majority of the rest of the share, so they had some control over the future of the company. It wasn't until 2011 that Nintendo bought them out completely, thus making them fully under control of Nintendo.

Edit:  "Namco Bandai is considering the sale as a way to strengthen its relationship with Nintendo and is not entirely ending its involvement with Monolith Soft. Namco Bandai will retain 16 percent of the developer's shares and will continue to count the studio among its partners. "

http://www.gamespot.com/articles/nintendo-buys-monolith-soft/1100-6169813/