If even half the Wii install base is hardcore, we're talking about a whooping low cost 25 million people here. And really, there's no excuse anymore. If all people owning a Wii are casuals, who bought SSBB, SMG, MP3, RE4, RE:UC, and many more?

Even during a very dissapointing 2008 on Nintendo's part (well 2nd half of 2008 actually), 3rd parties wandered off in the horizon, completely missing the train.

Also, how does it seem to you that after 3 years into the system's life, NOT 1 huge-budget, well known IP has been released on the platform by 3rd parties??? Noone is even trying!

The state of console game sales is just sad for me to watch. I don't even bother checking out the chart unless there's a semi-big release involved. I'm purchasing a few of Marvelous games in the future anyways.

I just wouldn't be surprised if more Japanese developers start making their games geared toward western audiences next gen/later this gen.

Actually, of the games you mention only SSBB and SMG had very good sales (but much smaller than Wii Fit, Wii Play, and Wii Sports).  While (I think) that MP3 and the RE games have still failed to sell  2 million copies (while Wii Music has) and they have sold far less than similar games on the other consoles that have sold  20,000,000 to 30,000,000 fewer units.

For example, Resident Evil The Umbrella Chronicles has sold 1.28 million copies and RE4 Wii Edition has sold 1.57 million copies on Wii while RE5 has sold over 2 million copies on both the PS3 and 360 (4.37 million combined).

the big problem is that to take full advantage of wii hardware, you kinda have to make a decision not to port to any other platform, because nothing else can support motion control yet.
Then, on top of that, half the audience or more is only interested in Mii titles or wii fit, and you have a recipe for disaster with 3rd party new IPs.

What does Wii Music passing 2m have to do with these games' sales? Bioshock didn't sell as much as Halo 3 as far as I know.

Have you any idea how much of the HD install base only plays Pro Evolution Soccer, Madden and Halo?

       Mainly because it shows the kinds of games that one can expect to see sell well on Wii while one of the best games of all time in its best version can't even sell as well as that universally panned game.  Another example huge sales for Carnival Games.

       I'm fairly certain that the quality difference between Bioshock and Halo3 according to Metacritic or Game Rankings is much smaller than that between Wii Music and RE4.

Japan Wii owners are just casual gamers that want MARIO and only MARIO. They do not like other good games.

Advertising is also another issue. If you spend so much money on making a quality game, then why not spend a bit more to advertise it.

Marvelous and Xseed games are amazing pubs that make extremely outstanding games but do not sell outstandingly well such as No More Heroes 2: Desperate Struggle and Little King's Story which are perfect examples.

With news coming from Ubi today that the average next gen game will cost $60,000,000 to make I would say 2 million is the new benchmark indicator for quality sales because it is an axiom in movies that you have to make back twice what you spent on making a Hollywood blockbuster in order to make a profit that you would have to set 2 million as the benchmark because if you only sell 1 million of a 60 million game you are only breaking even while selling two million and earning $120,000,000 should ensure a sizeable enough profit.

I feel Nintendo has already set a similar benchmark with their statement that Other M has to sell 1.5 to 2 million copies.

I believe it also has better graphics than the earlier versions.