TheSource said:
Nintendo was still shipping a few thousand NES units each year to Japan through March 2000 even though it released in 1983.
Compare that to GC which was largely abandonded by Nintendo in Japan by 2006 despite releasing in 2001 and you have an idea on why he takes this position.
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Another consideration is India and China ...
Although people have started shipping consoles to India and China the majority of potential users can not afford a system that costs $100, their developers can (probably) not manage to produce games which are based on the current HD consoles, and consumers will not buy games that cost more than $5 to $10 with how rampant piracy is.
In 2010/2011 Nintendo may decide to replace the Wii with a new console, but they can still push the Wii in both the western world (as you suggested) and they can start heavily pushing the Wii in the developing world.