Unlike Microsoft, Nintendo doesn't try to run it's competition out of business. They are satisfied with 40% market share, and know Sony is hurting enough as it is, and Microsoft has a long ways to go to becoming a serious threat in Japan.

Wii doesn't even come with a game in Japan.
They should start bundling and release more games for it. Also 3rd parties have to start announcing/releasing games for Wii, or the only console that even has a chance to challenge the handhelds will be lost.

There needs to be lots of advertising for the shipload of J-games that are on the way to show that Wii is a system for core games as well.

With MHG, MH3, Muramasa, Arc Rise, Tales of, Samurai Warriors 3, Valhalla Knights, FFCC and eventually DQX there's more than enough content and Fatal Frame showed some groups have made the step to Wii. They just need to shift from "the new thing" to "gaming console" in Japan.

I have to dissagree with this to some extend. The Playstation 3 has shown that it is indeed able to sell 3rd Party games. Yakuza 3, Resident Evil 5 and Metal Gear Solid have all been big hitters. I'm not saying the Wii can't sell third party games (see Dragon Quest Swords and Taiko Drum Master) but the PS3 is capable of selling 3rd Party games as well. And the PSP is definitely more capable of selling 3rd party games than either the Wii or the PS3 so it is just natural that publishers concentrate on the PSP and see it as the system to develop for (besides the DS of course). Nintendo has been too much of a competition for 3rd parties on their systems so far, at least in Japan.

Not to take away from this, but these are all multimillion dollar sequels in very popular series with lots of marketing. Now indeed they have sold well, but for the average Japanese company that's not Square/Capcom/Konami this is not a possibility. There's no doubt the PS3 sells software, but in the end the're's only some 3 million people owning one, something that will likely only be able to support the very big hits. This is also evidenced by the software sales behaviour on PS3.

The PSP does sell 3rd party games, but like I said it's important that at least one console becomes the default place for 3rd party software, to prevent Japan from being handheld only. This because handhelds are not so dominant in the West and the Japanese developers need to reach the Western market. 3rd parties CAN up the demand for Wii in Japan, something that's already started with MH and in the future DQ. PS3 has had all -1 of the top PS2 franchises already. It's clear that nothing will make it stellar success. Wii only recently lost track of PS2's sales, so it still has the potential to come close and be "the Japanese console".

The "Nintendo is too big of a competitor" is nonsense. If your software is nowhere near the quality of Nintendo it's obvious you won't compete. I'm sure Monster Hunter 3 won't have any problems selling, despite not being Nintendo software.

What's startling about the Wii's success in Japan is that it's been with almost no games to appeal to the traditional Japanese gamer. Aside from Symphonia and DQ Swords, the system's sales have come from two demographics: Nintendo fans and Casual/motion gamers. We know that Sports Resort is going to be big in Japan so that will help a bit.

So the question is when is the Wii going to finally start to appeal to the traditional Japanese gamer? When is it going to make that long hard slog that the 360 has been making over the last year? The major titles (Monster Hunter, Tales and DQ) aren't coming out for at least a little while, and games like Fragile and Tenchu rely on a ready and willing install base already being there, which it clearly doesn't have already. So what does 09 have for Japan? According to our "Games of 2009 thread" we've got:

Cosmic walker - I know we know nothing about this one.

Sin & Punishment 2 - Appeals to both Nintendo and "hardcore"

Muramasa: Demon Blade

Final Fantasy Crystal Chronicles: The Crystal Bearer - oh yeah, we need to start counting this as one of the majors

Kizuna

Dynamic Slash

Little King Story

Rune Factory: Frontier

Romance of the Three Kingdoms XI

Valhalla Knights: Eldar Saga

Monster Hunter G

Arc Rise Fantasia

Pro Evo 09

And we've still got lots of time for game announcememnts. Expect some more good news from Capcom and some other Japanese developers. The Wii is definitely in a game drought, but it's not a long term one.

Some bundles and colours might help things, but I don't think a price cut is all that necessary

I agree with most of what you said I just wanted to point out that the Ps3 is also capable to sell software. I agree Japan needs an important home console but a lot of publishers don't care for long term effects it seems.

Just something about your last paragraph: I don't think it's nonesense, really. Even if 3rd Parties put a lot of effort into their games Nintendo would still release a hell of a lot of games on its systems and thus there would still be more competition for 3rd Parties and thus they'd sell less games (if the Wii has an average attach rate that is). That's what I want to say.

It need games, games and games not pricecuts...

@op - I think the 6-month thing is a bit of an exaggeration, as the console did quite well over the holidays, despite "must-own" software not being released for it. The games from earlier in the year helped it along (Wii Fit, Mario Kart, SSBB, etc).

Really all that needs to happen is for some new "must own" software needs to be released. This is why the PS3 has a surge right now - its not price, nor the desire to buy a PS3, but to play the "must have" games for it. Once people own the must have games, the sales will subside back down to a lull. As for right now, its a software lull for the Wii.

Didn't Capcom say they were about to make an announcment to make Wii RE fans "very happy" ?

Assuming it's not just Western localisations of the ports of 1 and 0 that Japan already have, then that shoulld boost in Japan.

Actually, I think it's something quite big from the fact that they waited until after RE5 had a bit f time to sell, they didn't want to make a huge announcement for the Wii that might stop people buying a PS360 to play RE5

I am sure Nintendo will start to release console bundles in Japan with the most awaited games: Monster Hunter 3 and Dragon Quest X are the most influential candidates for that.

I don't know about the others though