I tend to agree with the TC here, even though I don't necessarily agree with his some of his reasoning. The Wii dominated in sales, I don't deny this. But regardless, Nintendo was suffering from the same stubborn attitude, the same lack of foresight, and the same problems back then that are now catching up to them as the years pass on.
The Wii was very much in a sense the "tickle me Elmo/Tamogachi" of its time, so much so that all other failings Nintendo didn't/refused to address during the Wii's reign were left to fester and grow and I think that's becoming more apparent as we're watching Nintendo now make blunder after blunder from those same exact issues stemming from years ago. They're not so easy to hide when there's not a waterfall of cash in front of them. Then, when the furor of the Wii finally wore off and the torrent of cash lessened, the weight of those mistakes and Nintendo's inability and/or unwillingness to rectify at the proper time dropped hard on their head, and came into focus to all, and we are currently witnessing the consequences today.
Let's look at the facts. While the Wii was flying off the shelves and gave Nintendo all that money, they:
....refused to invest to overhaul their online infrastructure to bring it up to date. Did nothing to prepare for the hurdles HD development would bring. Did not reinvest all that profit into growing their business to create new studios at a crucial time so as to be ready for the Wii's successor. Did nothing to improve their marketing. Seemingly remained uninterested into putting a serious attempt at garnering 3rd party support. Insisted to remain safe and conservative as possible.
Then, when demand has subsided and two years before the Wii U hits they decided to yank support for the Wii, sat on their laurels doing none of the above, then made another system with a Wii-like selling point. They then threw it out on the market charging an exorbitant amount of money for what it offered, gambling that they could coast off the Wii's brand-name alone, not taking into account that the casuals had moved on/and or was left confused, nor the fact that core gamers who supported them before the Wii felt betrayed and consequently laughed at them considering what was expected in this day and age (things that MS and Sony worked on improving during the Wii's successful years). Nintendo was then left hanging over a pissed off core with no casuals to take up the slack, with their system utilizing features stuck YEARS in the past. Add to this Nintendo's current philosophies, Japan oriented view, head-in-the-sand attitude, and mix in some arrogance and hubris to boot and I see nothing but oncoming disaster.
Considering all of the above, yes, I believe the Wii did in fact hurt them. While the bottom line has shown that the Wii has not ruined Nintendo financially, quite the contrary, I've nevertheless come to view it to be a short-sighted venture to grab as much capital as possible, which through its enormous success enabled Nintendo to ignore and disregard (or mask through inability to predict what would happen) various factors that would continue to make them successful in the long-term and are now biting them in the ass and causing them to be the laughing stock in many gamers' eyes today.
I believe Nintendo's issues stem largely from a lack a foresight (and to a certain degree laziness fed through arrogance), and the Wii's success only exacerbated this.
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