Financially? No, its not dead. But it is pretty close to being to the core gamer group who are not interested in Wii Fit and Wii whatever-you-want-to-add-to-the-end titles. It's a party console and a casual console, two things you don't really do that often. Casual gaming or whatever, is meant to be gone and done really quick and party gaming is group events that while fun only happen on the weekends and probably aren't a weekly event.
About the only thing people are still really playing on the Wii that is a solid core game is Smash Brothers, but its always had a pretty rabid fan base to begin with. Nintendo keeps going because they can promise a new Mario/Zelda/Metriod game and get people on board once a year.
But I'd say it is pretty bad sign when you're getting people on board once a year rather than once a month or so.
I'm still waiting on Zelda to make its true appearance on the Wii and not a silly port of a GC game that I already own. Ever since Sony entered the market and showed a console that could hit in all markets equally, Nintendo (at least for me) has an image trouble with being seen as for children. If Nintendo could fix that image problem, they'd be a more appealing console for me. I love Nintendo, but they only make so few games that I'm actually interested in that it takes years upon years for me to actually have a reason to buy the system. I mean I didn't buy a Gamecube until Twilight Princess came out and at that point the Wii was out, the Gamecube was pretty over. That's pretty bad when it becomes worthwhile at the very end of its cycle.
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