Conventional thought is that "Wii was immensely successful and it was the Wii U that suddenly out of nowhere, failed Nintendo". Wii was a horrible decision. Much like if an athlete were to just sit around and eat donuts, yet still be thin. And then, few years later they wake up to realize that they're in horrible shape as if it happened out of nowhere.
Wii brought in short-term profits for Nintendo, but it also caused them long-term problems.
* Casual gamers were fair-weather consumers and Nintendo failed to provide them with more games as significant as "Wii Sports"
* Wii started the precedent where Nintendo wouldn't get more than half of the third party multi-play support. Gamecube got most of the third party multiplats.
* Nintendo alienated "hardcore gamers" plain and simple by having to play constant catch-up with weak hardware.
* Wii started the predecent where a conventional but perfectly fine controller would be less acceptable than the perfunctory gamepad.
* Wii viewed the casual gamer as a simple-minded person who couldn't handle hardcore games. Now that we see many people who haven't had a lot of history with gaming coming onto action games like Mass Effect, COD and Skyrim (including women), this is invalidated.
* The divide between casual and hardcore also created a pricing problem. Due to the casual consumer and the expensive Wiipad, Nintendo had to make a price that was neither affordable nor economical to many people.
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