It's pretty obvious that most developers thought Nintendo was dead in the water. The Wii has been outselling PS3 and Xbox 360 by HUGE numbers, yet the third-party gaming library on the Wii is pretty sparse. Until now it hasn't mattered much, but as games like Grand Theft Auto 4, Devil May Cry 4, Call of Duty 4, Aliens: Colonial Marines, Oblivion, and Resident Evil 5 start to accumulate on both the 360 and PS3, you have to wonder how far Mario will take the Wii. At least Nintendo landed Guitar Hero 4, Spore and Star Wars: The Force Unleashed.
Probably the biggest obstacle facing the Wii is the percentage of Wii-specific games released by the end of this year that will either be genuinely novel playing experiences or cheap rip-offs with a few useless Wii-Mote commands thrown in to please Nintendo. It doesn't help that so many Wii owners seem to love simple titles like Wii Sports. I hope it doesn't encourage developers to produce fast and easy. We need more Super Mario Galaxies, or at least titles like Resident Evil 4: Wii Edition that make sense with a Wii-Mote. It's a shame that Nintendo hasn't tried to bring in more first-person-shooter or real-time-strategy developers to add variety to their gaming libary, and take advantage of the Wii-Mote motion sensor's capabilities which has the potential to be the first console controller that can match the speed and efficiency of a mouse.
You may have the lead now Nintendo but if you sit on this position too long and don't realize what the market demands, you're going to lose it! The gaming library on the Wii is very similar to the Gamecube and we all saw how well that did for Nintendo. Once the low launch price starts to match the price drops of 360 and PS3, and casuals become tired of their Wii-Mote, the real competition begins!