Personally I think Wii has limitation due to the fact that they are targeting casual gamers.
The thing about casual gamers is that they won't be buying that many games. Assuming that Large portion of Wii owners are casual gamers that never had a console before, those consoles won't generate that much money compared to consoles owned by hardcore gamers will generate, because casual gamers don't buy as many games as hardcore gamers do.
Also casual gamers don't like complicated games. My friend is a casual gamer who never had any game system before. She likes Mario Party 8 and Warioware, but when she tried Paper Mario, she had to return it immediately because she thought it was boring and too confusing.
Using one person to generalize the situation isn't very good argument but I think there are more cases like this, especially with Nintendo specifically targeting casual gamers. Once the third party developers find out that despite the strong Wii sales, the market out there is limited, they will go back to other consoles to develop their games.
Also Wii has limitation with system power. Many complicated physics calculations and A.I could be impossible on Wii, also Wii games will be immediately inferior graphically. These are the elements that hardcore gamers look for because they enhance their gameplay experience.
Until I see more dedication towards hardcore gamers, I will not believe that Nintendo will be dominant console of this generation.
TriangleHard
One thing I see wrong in this. Every hardcore gamer started out as a casual. Who's to say Nintendo isn't introducing a whole mass of casual gamers that many of them may or will become hardcore gamers down the road. Just a thought.
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