Nice blog. I have to say that I mainly agree that the family market is the big one to crack - but when it is cracked, you've made it!
Apparently the wii was a bit of a gamble for Nintendo as it was so different, failures like the 'NGage' prove that it's not always acheivable to wow millions due to compatibility...The easier way out is usually doing what PS3 and 360 have done - to make a basic machine which does what it says on the tin.
So, I think you're right - the wii has been a huge success and does appeal to the family audience, however I think 9/10 it would go down a flop if it wasn't created/marketed correctly.
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