"dates back multiple years"

Err... isnt that just 2? Its a bit of an exageration.

3rd party developers made huge margins on Wii games that were re-invested for the development of more risky and expensive AAA games on Ps3/X360.  While most people tend not think about it, Ps3 and X360 users gained form the success of Wii too.

i could argue the same and say there is only core console market since  PS1, PS2 and now PS4

Excuse me? ok. let me understand what you are saying here. Are you saying that third party devs would release games on the Wii, then make a LOT of money from that game, then rather than keep investing in the platform that made them all that money, take it and go make AAA games and release those exclusively on other platforms???

No. Nintendo did a piss poor job handling both core and casuls with the Wii. Evidently clear in going from a 100M+ console to a sub 17M selling console. The problem with Nintendo is that it's always been a platform of extremes. You are either extremely into Nintendo tyoe games or exclusives (this accounts for the Nintendo faithfuls that will get a Nintendo console as long as it has Zelda and Mario) or the extreme casual that got it just cause motion control gaming was in at the time (those ppl are all playing games on cell phones now). And it's hard for third parties to care when at all times the amount of people that actually buy their kinda games that own a Nintendo console are very very small. Even if it had 100M consoles sold.... a majority of those people didn't buy a Wii to play GTA or COD. Or even FIFA. 

well we cant exactly expect him to talk down the idea of ps neo, of course he has to give a PR pro response, its his job too

and like others have stated, he exaggerates with the ''multiple years'' quite a bit when ps4 has only been out 2 years lol

Going from 100M+ to sub 17M has nothing to do with Wii's success, it has to more with the Wii U failures. In large the audience for the device were confused from the get go and Nintendo's inability to handle the jump from SD to HD when it came to making games. 

Also Nintendo faithful are a core fanbase, and the reality is the best selling core titles for Nintendo Wii, worked double as core and casual in the Wii generation. Mario Kart Wii, NSMB, Galaxy, etc. Just because Nintendo caters to its on select demographic with core audience, does not exclude them from that audience. 

Otherwise Ruler is right: "i could argue the same and say there is only core console market since  PS1, PS2 and now PS4"

Shots fired at the Wii U.

The fact that a lot current PS4 and XBone users hade a Wii does not mean it catered to that specific market. Most of them bought it for party/motion control games. Wii-U's low sales that continue the trend of ever lower sales for Nintendo consoles proves this, and it proves that three systems can't trive in the core console market.

Yes, that's what they did. Since the Wii allowed them to make great returns even without great budgets, it was used as a cash cow for all its lifetime. The scale of production of Wii titles didn't get noticeably greater with time, the scale of Ps3/X360 productions did.

I am sorry but I think the basis of your argument is flawed. 

Third party releases for the Wii dropped and dropped into near bin existence ove rthe course of the consoles life. That simply wouldn't happen if ur theory about higher margins and cash cows are true. Cause the publishers work, is that they go where the money is. If they were making a lot of money from their Wii offerings, they would increase the volume of money invested in the platform knowing fully well they stand to make more and not reduce it. 

So no, what you are saying makes little sense to me.