Nintendo's president Satoru Iwata has admitted his company's early success with the Wii due to a focus on mass appeal, has cost the company in the long run - becoming a big contributor to its current troubles.
"The Wii was able to reach a large number of new consumers who had never played games before by bringing hands-on experiences with its Wii Sports and Wii Fit," he said in a talk with investors.
"However, we could not adequately create the situation that such new consumers played games frequently or for long, consistent periods. As a result, we could not sustain a good level of profit."
He also noted that there wasn't enough of a focus on games for gamers, something that the Wii has been heavily criticised for over its lifetime. While there have been some heavier titles available - such as Monster Hunter Tri that has an average play time of almost 100 hours - the console has lacked a traditional gamer focus.
"Consequently, we presume some people felt that the Wii was not a game system for them or they were not willing to play with the Wii even though some compelling games had been released," continued Iwata.
"Once consumers have a notion that 'this system is not for us', we have learned that it is extremely difficult to change their perceptions later."
It came to light just yesterday that the WiiWare platform had become a ghost town with almost no profitability in it for developers anymore. Nintendo is no doubt hoping that its likely long lead in for the next-gen Wii U will help bring it back into gamers' good graces.