I actually agree with your belief that developers are worried more about their prestige than what the customers want. Every young developer wants to create the next Halo, God of War, Gears of War, etc, so forth and so on. These are individuals who are creating games not to please customers, but to please their own imaginations. Not that there is anything wrong about that.
But I remember a developer (who shall remain nameless) once said to me. "Great games come from half of what the customer wants, and half of what your imagination can do to serve that customer".
So for example, if a customer wants a game about fishing. Then by all means, give them a game about fishing. But that does NOT mean you have to make a generic, boring, and "shovelware" fishing game. Throw some of your own flair into it, make it your own but still make it for the customer.
This balance must be near impossible to achieve though. Since no one seems to be able to get it. At least not any of the "major" companies.
As for the Wii being "New" generation. I can sorta agree, it's new in the sense that it's taken the gaming world into a completely new direction, Revolutionized if you will. But it's next in the context of how we categorize our generations.
Why must JRPG female leads suck so bad?









